WASHINGTON, Feb. 5, 2026 – U.S. House investigators have launched a formal inquiry into World Liberty Financial (WLFI) — the crypto company associated with the family of President Donald Trump — following reports that a United Arab Emirates-linked investor acquired a $500 million stake in the firm just days before Trump’s inauguration.
The move marks a significant escalation in congressional scrutiny of foreign investments in politically connected businesses, raising conflict-of-interest, national security and transparency concerns.
Key Developments: UAE Stake Sparks Congressional Inquiry
A report published by The Wall Street Journal revealed that a company backed by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser, quietly acquired 49 % of WLFI for about $500 million just four days before Trump was sworn into office.
The investment reportedly included an upfront payment of roughly $187 million that went directly to entities linked to the Trump family.
Additional sums were slated for affiliates of WLFI co-founders.
After the deal, the UAE-backed firm became the largest external shareholder in WLFI.
CoinSpeaker reported Representative Ro Khanna (D-Calif.), a House Select Committee member, has asked WLFI to provide detailed records related to the transaction, including communications and payment trails tied to the UAE investment. The letter to company executives also seeks documentation about the use of WLFI’s native USD1 stablecoin in a separate $2 billion transaction involving Binance.
Trump Denies Personal Involvement
When questioned by reporters, President Trump said he was not personally aware of the deal, stating that his children — who oversee the family’s business interests — were responsible for WLFI’s operations. “My sons are handling that — I guess they get investments from different people,” he said.
The White House and WLFI spokespeople have denied any improper influence or conflicts of interest stemming from the UAE investment.
Ethics, National Security and Broader Implications
Democratic lawmakers have expressed concern that the timing of the investment — occurring just before critical U.S. policy decisions — could reflect a conflict of interest or undue foreign influence.
Senator Elizabeth Warren has publicly called the situation “corruption,” urging swift congressional hearings and investigations into the deal’s context and implications for national security, especially after U.S. officials approved sales of advanced AI chips to the UAE shortly after the WLFI transaction.
Lawmakers also want clarity on whether funds from the UAE stake benefitted Trump-linked entities and how the WLFI stablecoin was used in major financial transactions.
Market and Regulatory Reaction
The news of the UAE investment initially lifted WLFI token prices before volatility returned, reflecting a mixed market reaction to the geopolitical and regulatory implications of the deal. Regulators and crypto industry watchers warn that foreign investments in U.S. crypto firms tied to political figures may prompt tighter oversight and tougher disclosure rules as part of broader financial reform efforts.
What Comes Next
WLFI has until March 1 to supply the requested documents to the House committee. If the company fails to comply, lawmakers could pursue additional legal and legislative avenues, including subpoenas and ethics legislation tied to the ongoing crypto market structure bill.
