A US Home investigation has turned its focus to World Liberty Monetary, a Trump-linked crypto enterprise.
The transfer follows a current Wall Road Journal report of a $500M UAE-linked stake agreed shortly earlier than President Donald Trump’s inauguration.
Rep. Ro Khanna, a Democrat from California and the rating member of the Home Choose Committee on the Chinese language Communist Social gathering, on Wednesday despatched a letter to World Liberty co-founder Zach Witkoff looking for possession information, fee particulars and inner communications tied to the reported deal and associated transactions.
Khanna wrote that the Journal reported “lieutenants to an Abu Dhabi royal secretly signed a cope with the Trump Household to buy a 49% stake of their fledgling cryptocurrency enterprise [World Liberty Financial] for half a billion {dollars}” shortly earlier than Trump took workplace.
Breaking: I’ve launched an investigation as rating member of the Choose Committee on China right into a $500 million UAE funding within the Trump household’s cryptocurrency firm.
That is about public belief and transparency. https://t.co/2PfVrOmNni https://t.co/1PjXb64jyH— Ro Khanna (@RoKhanna) February 5, 2026
He argued the reported funding raises questions on conflicts of curiosity, nationwide safety and whether or not US expertise coverage shifted in ways in which benefited international capital tied to strategic priorities.
In the meantime, Trump has mentioned he had no data of the deal. Chatting with reporters on Monday, he mentioned he was not conscious of the transaction and famous that his sons and different relations handle the enterprise and obtain investments from numerous events.
@realDonaldTrump mentioned he was unaware of a reported funding by an Abu Dhabi royal into the crypto platform World Liberty Monetary.#Trump #Cryptohttps://t.co/tKQTmhjao1
— Cryptonews.com (@cryptonews) February 3, 2026
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The letter additionally linked the reported stake to US export controls on superior AI chips and considerations about diversion to China by third international locations.
Khanna mentioned the Journal report instructed the UAE-linked funding “could have resulted in important modifications to U.S. Authorities insurance policies designed to stop the diversion of superior synthetic intelligence chips and associated computing capabilities to the Folks’s Republic of China.”
In accordance with the Journal account cited within the letter, the settlement was signed by Eric Trump days earlier than the inauguration.
The investor group was described as linked to Sheikh Tahnoon bin Zayed Al Nahyan, the UAE nationwide safety adviser. Two senior figures related to his community later joined World Liberty’s board.
USD1 Stablecoin Use Raises Questions Over Affect And Income
Khanna’s letter pointed to a different UAE-linked deal involving World Liberty’s USD1 stablecoin, which he mentioned was used to facilitate a $2B funding into Binance by MGX, an entity tied to Sheikh Tahnoon. He wrote that this use “helped catapult USD1 into one of many world’s largest stablecoins”, which might have elevated charges and revenues for the mission and its shareholders.
The lawmaker additionally related the Binance funding to later coverage developments, together with chip export choices and a presidential pardon for Binance founder Changpeng Zhao.
He cited a former pardon legal professional who mentioned, “The affect that cash performed in securing this pardon is unprecedented. The self-dealing facet of the pardon by way of the profit that it conferred on President Trump, and his household, and folks in his interior circle can be unprecedented.”
Khanna framed the general image as greater than political optics. “Taken collectively, these preparations are usually not only a scandal, however could even characterize a violation of a number of legal guidelines and the USA Structure,” he wrote, citing conflict-of-interest guidelines and the Structure’s International Emoluments Clause.
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He requested World Liberty to reply detailed questions and produce paperwork by March 1, 2026, together with agreements tied to the reported 49% stake, fee flows, communications with UAE-linked representatives, board appointments, due diligence and information tied to the USD1 stablecoin’s position within the Binance transaction.
Khanna additionally pressed for particulars on any discussions round export controls, US coverage towards the UAE and strategic competitors with China, in addition to communications associated to President Trump’s determination to pardon Zhao.
The probe lands at a second when stablecoins sit nearer to the middle of market construction debates, and when politically related crypto ventures face sharper questions on possession, governance and entry.
Khanna closed his letter with a warning concerning the stakes, writing, “Congress is not going to be supine amid this scandal and its unmistakable implications on our nationwide safety.”
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