Lawmakers Scrutinize World Liberty After Reports of UAE Stake Before Trump Inauguration

Highlights:

• Lawmakers are scrutinizing World Liberty following reports of foreign investment and possible policy influence.
• Khanna’s inquiry focuses on a UAE-linked stake and stablecoin activity tied to a major Binance deal.
• The Congress set a March 1 deadline for records on ownership payments and internal communications.

Representative Ro Khanna has opened an official inquiry into World Liberty Financial, a crypto project associated with the Trump family. He declared the investigation in a letter dated February 4, 2026. Khanna is the ranking member of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party. He stated that the investigation looks at foreign investment and the national security exposure.

🚨 JUST IN: A senior House Democrat opens a congressional probe into Trump-linked crypto project World Liberty Financial (WLFI) after reports of a $500M UAE royal-family-tied investment.

What this means for crypto oversight ⬇️ pic.twitter.com/SFT0NttmtM

— Satoshi Talks (@Satoshi_Talks) February 5, 2026

Khanna wrote the letter to the co-founder of World Liberty, Zach Witkoff. He demanded ownership documents, payment documentation, and internal communications. He also requested the documents related to the export control policy and the use of stablecoins. The request involves communications with federal agencies and international representatives.

The letter quoted reports of the situation being serious and concerning. Khanna said that foreign capital that is linked with national security officials poses risks to oversight. He cautioned that U.S. policy should not be guided by anything other than national interest. He framed the investigation as an extension of congressional scrutiny.

Lawmakers Scrutinize World Liberty Over Foreign Ties

Lawmakers are reviewing reports that a UAE-linked investor group agreed to purchase nearly 49% of World Liberty. The reported transaction carried a value of about $500 million. According to the account cited, the deal was finalized shortly before President Trump’s inauguration. Khanna said the timing raised transparency concerns.

The investor group was described as linked to Sheikh Tahnoon bin Zayed Al Nahyan, the UAE national security adviser. Reports said two figures connected to his network later joined World Liberty’s board. Khanna questioned how those appointments occurred. He also asked how profits and revenue distributions were structured.

The letter highlighted World Liberty’s USD1 stablecoin. Khanna said USD1 facilitated a $2 billion investment into Binance by MGX, a UAE-linked firm. He wrote that the transaction helped expand USD1 adoption. Lawmakers asked whether the growth increased fees and shareholder benefits.

Breaking: I have launched an investigation as ranking member of the Select Committee on China into a $500 million UAE investment in the Trump family’s cryptocurrency company.

This is about public trust and transparency. https://t.co/2PfVrOmNni https://t.co/1PjXb64jyH

— Ro Khanna (@RoKhanna) February 5, 2026

Khanna associated the deal with U.S. technology policy. He cited export restrictions on sophisticated artificial intelligence hardware. The letter was concerned with the diversion to China via third countries. According to Khanna, there were reports that policy changes came after the investment.

The letter also mentioned the subsequent presidential pardon offered to Binance founder Changpeng Zhao. Khanna cited a former pardon lawyer who raised questions about the influence of money and power. He remarked that legislators should examine the presence of financial relations in government activities.

Trump Denies Knowledge As Congress Presses for Records

The congressional letter set detailed demands for records from World Liberty Financial. Khanna requested contracts, payment flows, and internal communications. He also asked for documents tied to board appointments and stablecoin transactions. The letter set a response deadline of March 1, 2026. The letter quoted that Eric Trump had signed the agreement days prior to the inauguration. Lawmakers inquired whether the transaction was in line with conflict rules.

President Donald Trump recently responded to questions regarding the investment in World Liberty Financial. Trump informed the press that he did not know the deal. He explained that his son and other family members run the business. He further stated that different parties have invested in the company.

Trump just said: “I don’t know about it… my sons are handling that.”

$500M investment from UAE royal Sheikh Tahnoon into World Liberty Financial – signed days before inauguration.

Weeks later – US approves massive AI chip sales to UAE (overriding national security concerns).… pic.twitter.com/UUHdk9UWU7

— Crypto.Andy (@oksandy_d) February 4, 2026

Khanna cautioned that Congress would increase oversight in the event of incomplete disclosures. He indicated that legislators will examine the material after the company makes the submission. The committee has not indicated the steps it will take after reviewing the documents.