Trump-Linked World LibertyFi Under Probe: What We Know

Rep. Ro Khanna has launched a formal investigation into World Liberty Financial (WLFI), a crypto project linked to Donald Trump, following reports of a $500 million investment from a United Arab Emirates-backed entity. The probe centers on potential conflicts of interest, national security risks, and the timing of policy decisions that benefited the investors.

What Triggered The Investigation?

The investigation began after a Wall Street Journal report revealed that Aryam Investment 1, an entity controlled by Sheikh Tahnoon bin Zayed Al Nahyan, purchased a 49% stake in World Liberty Financial. The deal was reportedly signed on January 16, 2025, just four days before Trump's presidential inauguration.

Khanna, who serves as ranking member of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, sent a formal letter to WLFI co-founder Zach Witkoff on Wednesday. The letter requests detailed documentation including:

• Ownership records and capitalization tables
• Payment distribution details
• Internal communications
• Board appointment records
• Due diligence materials on Aryam Investment 1

The deadline for submitting these documents is March 1, 2026.

How Much Money Changed Hands?

According to the Wall Street Journal, the $500 million deal was structured in two installments. The first $250 million was paid upfront before Trump took office, with specific allocations that raised immediate red flags for lawmakers.

The Payment Breakdown

The initial $250 million payment was distributed as follows:

• $187 million to Trump family-controlled entities
• $31 million to entities linked to Steve Witkoff's family
• $31 million to entities tied to co-founders Zak Folkman and Chase Herro

Steve Witkoff, a World Liberty co-founder, currently serves as the president's special envoy to the Middle East. This dual role has intensified concerns about potential conflicts of interest. The remaining $250 million was scheduled for payment by July 2025, though distribution details remain undisclosed.

As part of the transaction, G42 executives reportedly took board seats at World Liberty, making the Abu Dhabi vehicle the crypto venture's largest outside shareholder.

Who Is Sheikh Tahnoon And Why Does It Matter?

Sheikh Tahnoon bin Zayed Al Nahyan holds significant power in the UAE as the national security adviser and deputy ruler of Abu Dhabi. He reportedly oversees the $1 trillion Abu Dhabi Investment Authority and has pushed the UAE to become a global leader in artificial intelligence.

Under the Biden administration, Tahnoon faced restrictions when trying to secure advanced U.S.-made AI chips. The concern was that sensitive technology could reach China through companies like G42, an AI conglomerate he chairs. These restrictions were reversed after Trump's election.

Following multiple meetings between Tahnoon and Trump after the election, the Trump administration committed to granting the UAE access to hundreds of thousands of advanced AI chips annually.

The China Connection

Khanna's investigation highlights potential links between the WLFI investment and shifts in U.S. export policies on advanced artificial intelligence semiconductors. These policies were originally designed to prevent technology leaks to China.

G42 And AI Chip Approvals

In November 2025, the U.S. approved export licenses for advanced chips to G42 and supported a major AI data center project in the UAE. The approval granted computing power equivalent to 35,000 of Nvidia's most advanced GB300 processors.

The timing raised concerns because it came shortly after the reported World Liberty investment. Sheikh Tahnoon oversees both G42 and MGX, entities with alleged ties to Chinese firms.

Conflicting Reports Add Confusion

Not everyone agrees the deal happened as reported. ME News initially posted on X about the $500 million investment, but later retracted the claim, stating the reports were false. They said the information came from an insider but was officially denied.

This directly contradicts the Wall Street Journal report, which cited documents and people familiar with the matter. The conflicting statements have created uncertainty around one of the most scrutinized crypto deals involving the Trump family.

What Are The National Security Concerns?

The investigation extends beyond the investment itself to examine subsequent business activities and policy decisions. In March 2025, MGX used World Liberty's USD1 stablecoin to complete a $2 billion investment into Binance, a crypto exchange founded in China. This occurred during Sheikh Tahnoon's visit to Washington to meet with Trump.

The USD1 Stablecoin Factor

A stablecoin is a cryptocurrency designed to maintain a stable value by pegging it to a reserve asset, typically the U.S. dollar. World Liberty's USD1 stablecoin played a central role in facilitating the Binance investment.

Khanna has requested documentation on how USD1 was selected for the transaction, the revenue it generated, and whether company personnel discussed the later presidential pardon of Binance founder Changpeng Zhao. Zhao received a presidential pardon in October 2025, one month before the AI chip export approvals.

In November 2024, Senators Elizabeth Warren and Jack Reed raised additional concerns about WLFI governance tokens potentially being purchased by blockchain addresses tied to North Korea's Lazarus Group, as well as Russian and Iranian-linked entities.

What Happens Next

The investigation marks one of the most significant congressional inquiries into a Trump family business venture. Rep. Khanna has set a March 1, 2026 deadline for WLFI to produce financial records, board communications, and documentation about the USD1 stablecoin's role in the Binance transaction.

Congress will review the materials to assess compliance with conflict-of-interest rules and national security protections. The probe will examine whether foreign capital influenced U.S. policy decisions on AI chip exports and whether the timing of Changpeng Zhao's presidential pardon was connected to business dealings. World Liberty Financial has not publicly responded to the investigation.

Resources 

1. Report by The Block 1: House launches probe into $500 Million UAE deal linked to World Liberty Financial

2. Report by CoinDesk: House probe targets WLFI after report of $500 Million UAE stake

3. Rep RO Khanna’s letter

4. Report by The WSJ: ‘Spy Sheikh’ Bought Secret Stake in Trump Company

5. Report by The Guardian: Trump agrees deal for UAE to build largest AI campus outside US

6. Report by Bloomberg: The Many Faces of Abu Dhabi’s Trillions

7. Report by The Block 2: Binance elevates Trump-backed World Liberty's stablecoin by adding USD1 trading pairs