World Liberty Financial (WLFI), a crypto company linked to US President Donald Trump’s family, is facing scrutiny from House Democrats over a reported $500 million investment by an entity linked to an Abu Dhabi royal in the UAE.
California Representative Ro Khanna, a Democrat who has criticized public officials’ exposure to the crypto market, said on X on Thursday that he has launched an investigation into the UAE investment in WLFI.
“This is about public trust and transparency,” Khanna said, linking to a Wall Street Journal report detailing that he urged a US attorney to probe the deal as well.
The investigation comes after Trump denied knowledge of the $500 million stake on Monday. “My sons are handling that — my family is handling it,” he said.
Khanna has argued that the deal may violate multiple US laws
According to the WSJ, the investment was backed by Sheikh Tahnoon bin Zayed Al Nahyan, an Emirati politician who has been serving as the National Security Adviser of the UAE since 2016.
By investing $500 million in WLFI, Tahnoon acquired a 49% stake in the platform. The report noted that he pushed the US for access to advanced artificial intelligence chips.
As part of the probe, Khanna sent a letter to WLFI CEO Zach Witkoff, requesting answers to 16 questions and documents related to the investment agreement with Tahnoon. He also sought records detailing WLFI’s revenue and profit distribution, as well as its policies on conflicts of interest tied to the transaction.
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“These arrangements are not just a scandal, but may even represent a violation of multiple laws and the US Constitution,” Khanna wrote, adding: “Our ability to successfully outcompete the Chinese Communist Party depends on the integrity of our policymaking process.”
Khanna backed legislation to ban officials from trading crypto last year
Khanna’s latest investigation into WLFI marks another effort to address potential conflicts of interest stemming from government officials’ involvement in the crypto market.
In October, the California Democrat introduced legislation seeking to prohibit the president, members of Congress and their immediate families from trading cryptocurrency, citing concerns over conflicts of interest and the influence of foreign investment.
The controversy underscores broader tensions in Washington over crypto regulation amid delayed progress with the US CLARITY Act, which aims to create a clear federal regulatory framework for digital assets, including stablecoins and spot crypto trading.
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