World Liberty Financial (WLFI), a cryptocurrency firm linked to Donald Trump’s family, is under investigation by House Democrats concerning a reported $500 million investment from a group associated with an Abu Dhabi royal in the UAE.

California Congressman Ro Khanna, known for his critiques of public officials in relation to the crypto market, announced on X that he initiated an investigation into this UAE investment in WLFI.

“This is about public trust and transparency,” Khanna stated, referencing a Wall Street Journal report urging a U.S. attorney to look into the deal.
Translation: “This is about public trust and transparency,” Khanna said.

The scrutiny arrives following Trump’s denial of knowledge regarding the $500 million stake. He clarified, “My sons are managing that — my family is handling it.”

Khanna’s Concerns Over Legal Violations

Khanna posits that the deal could infringe on various U.S. laws. The WSJ indicates that the investment was secured by Sheikh Tahnoon bin Zayed Al Nahyan, a politician serving as the UAE’s National Security Adviser since 2016.

By funneling $500 million into WLFI, Tahnoon obtained a 49% stake in the platform and reportedly advocated for U.S. access to advanced AI technology.

As part of his investigation, Khanna sent a letter to WLFI CEO Zach Witkoff demanding documentation and answers linked to the investment agreement with Tahnoon. He has requested records concerning WLFI’s revenue distribution and policies on conflicts of interest concerning this investment.

“These arrangements are not just a scandal; they may represent a violation of multiple laws and the U.S. Constitution,” Khanna asserted, emphasizing the importance of integrity in policymaking against competition from the Chinese Communist Party.

Khanna’s Regulatory Proposals

This latest probe reflects Khanna’s ongoing efforts to eliminate potential conflicts of interest arising from government officials interacting with the cryptocurrency sector. In October, he introduced legislation aimed at prohibiting key political figures and their families from trading cryptocurrencies, citing worries about foreign investment influences.

This issue underscores significant tension in Washington concerning the regulation of cryptocurrency, especially amid delays related to the U.S. CLARITY Act, which seeks to establish a clear federal regulatory landscape for digital assets such as stablecoins and cryptocurrency trading.