A senior Democrat in the US Congress has launched a notable investigation into World Liberty Financial (WLFI), a cryptocurrency project linked to Donald Trump. Representative Ro Khanna has requested comprehensive information and documents from the project, arguing that a $500 million investment, allegedly from an entity linked to the UAE royal family, poses serious risks to both national security and the constitution.
WLFI is under investigation
Khanna serves as a senior member of the House Select Committee on Strategic Competition and the Chinese Communist Party. In a formal letter sent on Wednesday, he posed numerous questions to Zach Witkoff, a co-founder of World Liberty Financial. The letter also cited a previous Wall Street Journal report alleging that a 49% stake in WLFI was acquired by an entity called Aryam Investment 1.
This investment is said to be controlled by an entity linked to Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's National Security Advisor and brother of the country's leader. According to the report, the agreement was signed just four days before Trump took office and involved a $250 million upfront payment. It is alleged that $187 million of this amount went to companies linked to the Trump family, and at least $31 million to entities associated with Steve Witkoff.
Khanna's letter specifically highlights the Chinese connections. It notes that companies like G42 and MGX, under Tahnoon's control, have had past dealings with Chinese firms, and that following this investment, the US approved export licenses to the UAE for advanced AI chips. These chips have long been under strict control to prevent technology leakage to China.
The letter also scrutinizes MGX's $2 billion investment in Binance in March 2025. It states that this transaction was carried out using WLFI's USD1 stablecoin, and that Tahnoon was in contact with Trump in Washington during the same period. The fact that Binance founder Changpeng Zhao is expected to receive a presidential pardon in October 2025, shortly before the chip export approvals, is among the factors raising questions. Khanna argues that when all these developments are considered together, it could constitute not only an ethical scandal but also a violation of the "emoluments clause" of the US Constitution, which prohibits obtaining benefits from foreign governments. In this context, the WLFI is asked to respond to 16 separate questions by March 1, 2026, including ownership structure, investment agreements, due diligence studies with UAE-linked institutions, China-sourced revenues, and potential impacts on policy processes. The requested documents include contracts with Aryam Investment 1, correspondence regarding the Binance deal, and conflict of interest policies. The letter states, "These transactions and investments not only appear improper; they also raise suspicions of illegality. At a time when strategic competition with China is so critical, the American people deserve full transparency." World Liberty Financial has not yet issued any official statement to the public.
