U.S. lawmakers have opened a formal probe into World Liberty Financial Inc. (WLFI) following reports that a UAE-linked entity acquired a roughly $500 million stake in the firm, injecting fresh political and regulatory uncertainty into an already sensitive intersection of crypto, foreign capital, and national security.
Key takeaways
- U.S. House lawmakers launched an investigation into WLFI over a reported $500 million UAE-linked investment
- The probe was triggered by a Wall Street Journal report detailing foreign ownership concerns
- Lawmakers are examining potential national security, legal, and policy implications
- The case adds to broader scrutiny of crypto firms with cross-border ties
Congress raises national security and policy concerns
The investigation is being led by the House Select Committee on the Chinese Communist Party, with Ranking Member Ro Khanna formally requesting information from WLFI co-founder Zach Witkoff. In a letter dated February 4, lawmakers cited concerns that the reported transaction involved entities connected to the United Arab Emirates royal family and may have broader implications for U.S. policy and security.
According to the letter, the Wall Street Journal reported that intermediaries linked to Abu Dhabi’s royal family secured a significant stake in WLFI shortly before President Donald Trump’s inauguration. Lawmakers argue that under normal circumstances, such a level of foreign investment into a company tied to the president’s family would have triggered intense scrutiny, raising questions about transparency, influence, and compliance with U.S. law.
The letter also references additional allegations involving WLFI’s activities, including the reported use of its USD-pegged stablecoin to facilitate a multi-billion-dollar investment into Binance by Emirati entities. Lawmakers claim these arrangements may intersect with U.S. export controls, sanctions policy, and efforts to prevent advanced technology from reaching China through third-party countries.
Taken together, members of Congress say the reported relationships warrant closer examination to determine whether any U.S. laws were violated and whether foreign financial influence may have affected government policy decisions. The committee has requested documents and detailed disclosures to better understand the links between WLFI, foreign investors, and U.S. political leadership.
The probe underscores intensifying scrutiny of crypto firms operating at the crossroads of geopolitics and finance. As regulators and lawmakers push for clearer rules and stronger oversight, cases involving foreign capital and politically connected entities are likely to remain a focal point in Washington.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/congress-targets-wlfi-in-new-probe-over-uae-linked-investment-claims/