World Liberty Financial faces House probe on $500M UAE stake

House investigators have opened a probe into world liberty Financial (WLFI) following reports of a secret $500 million transaction that granted an abu dhabi–connected group a large stake, according to CoinDesk. The inquiry centers on whether foreign state–linked financing created conflicts for a venture associated with prominent U.S. political figures.

Rep. Ro Khanna initiated the inquiry and sent a document-demand letter seeking details on the transaction, related communications, and payment flows, with a response deadline of March 1, 2026, according to his office. Investigators are also asking how WLFI’s stablecoin operations fit into any arrangements involving foreign investors.

Reuters reported that the probe involves an investment tied to Abu Dhabi’s Sheikh Tahnoon bin Zayed in the Trump‑backed venture. The review is examining potential conflicts of interest and national security exposure from a foreign stake in a U.S. crypto enterprise.

World Liberty Financial has criticized the effort as political harassment of a private business, as reported by The Wall Street Journal. The company argues the investigation is driven by partisan motives rather than evidence of legal violations.

Why the reported UAE investment matters: conflicts, security, Emoluments Clause

The reported UAE financing raises ethical and constitutional concerns because foreign state‑linked money can create real or perceived conflicts when it benefits a venture connected to federal officeholders. Under the U.S. Constitution’s Foreign Emoluments Clause, federal officials cannot accept benefits from foreign states without congressional consent.

Ethics experts have argued that such foreign‑linked payments could implicate the Emoluments Clause regardless of intent, based on analysis by The Guardian citing former Bush ethics lawyer Richard Painter. That view underscores why congressional committees scrutinize foreign capital flows touching businesses tied to public officials.

National‑security concerns have also been raised, including whether policy on advanced AI chip export controls was affected, according to a Senate floor speech by Sen. Chris Murphy. Those claims remain contested and are part of the broader oversight questions now before lawmakers.

WLFI maintains it has done nothing improper and portrays the scrutiny as partisan. “Harassing a private American business to score political points,” said World Liberty Financial in a statement.

Media coverage has described the arrangement as a $500 million purchase of 49% of WLFI by a UAE‑linked investor shortly before Trump took office, as reported by CryptoNews. Watchdog group Accountable.US separately flagged a $100 million WLFI‑token purchase by a UAE‑based fund and warned of foreign influence risks.

According to the House inquiry letter, investigators seek records of deal negotiations, identities of counterparties, communications with UAE‑linked entities, payment ledgers, and details on WLFI’s USD1 stablecoin design and use. The focus is on tracing any foreign-government–connected money through corporate or personal beneficiaries.

The letter sets a March 1, 2026 deadline for production. Investigators indicate they will evaluate compliance and assess next steps based on the completeness of responses.

WLFI has said lawmakers are politicizing oversight and targeting a private company without cause. The company’s position suggests it will defend its practices while the House review examines materials and correspondence.

At the time of this writing, WLFI traded near $0.13, based on data from CoinGecko. Market prices are contextual and do not indicate legal outcomes.

Legal and policy questions raised by the WLFI-UAE deal

How the Emoluments Clause could apply to foreign-linked payments

The Foreign Emoluments Clause prohibits federal officials from accepting any present, emolument, office, or title from a foreign state without Congress’s consent. If a foreign state–linked investment indirectly benefits a federal officeholder through a business, it can raise constitutional exposure.

Office of Government Ethics rules separately forbid using public office for private gain or creating an appearance of impropriety. Those standards inform why investigators examine whether official actions coincided with private financing involving foreign sovereign actors.

What investigators seek: deal records, communications, payments, and USD1 details

According to Yahoo News, the House letter requests documents covering the $500 million stake, all related communications, counterparty identities, and payment routing to entities or individuals. It also asks for materials detailing USD1’s issuance, reserves, and any UAE‑linked interactions.

FAQ about World Liberty Financial

Who invested the reported $500 million in WLFI and what ties exist to the UAE and Sheikh Tahnoon bin Zayed?

Reuters reported the probe concerns an Abu Dhabi royal investment linked to Sheikh Tahnoon, tied to a 49% WLFI stake.

What is Rep. Ro Khanna seeking in the House investigation and what is the timeline for responses?

Deal records, communications, payment flows, and USD1 details, with responses due in early March 2026.