US Democrats Seek Answers on Reported $500mn UAE Investment in Trump-Linked Crypto Venture

In a 4 Feb letter to World Liberty Financial (WLF) co-founder Zach Witkoff, Representative Ro Khanna said a Wall Street Journal report raised questions about a reported $500mn purchase of a 49% stake in WLF linked to a senior UAE royal and national security official, and about whether US actions on advanced AI chip export controls to China could have intersected with private financial interests. 

In his letter, Khanna requested documentation on agreements, payments, ownership details and communications surrounding the alleged deal, with a response deadline of 1 March. 

Foreign money and policy questions

Khanna, a California Democrat,  wrote the letter in his capacity as ranking member of the House Select Committee on the Chinese Communist Party (CCP). WLF is the crypto business linked to Trump's family.

The lawmaker framed the situation as a national security issue, citing concerns that UAE entities have sought access to advanced US chips and that export control decisions should be insulated from personal business benefit.

"Our ability to successfully outcompete the Chinese Communist Party depends on the integrity of our policymaking process. Congress will not be supine amid this scandal and its unmistakable implications on our national security," he said.

The letter argues that the reported UAE stake purchase and the later use of World Liberty Financial’s USD1 stablecoin in a major Binance-related transaction create a risk that US decision-making is being influenced by private financial incentives. 

Khanna also asks the company to confirm reported payment flows tied to the UAE transaction, disclose beneficial ownership behind the investing vehicle, and explain whether any company personnel were involved in discussions touching US export controls or broader US policy toward the UAE and China. 

It also requests a capitalization table, profit distributions, due diligence records, and any internal policies designed to prevent conflicts of interest.

WLF eyes stablecoins and banking licence

World Liberty Financial has positioned USD1 as a dollar-backed stablecoin and has also launched a tradable governance token, WLFI, alongside a broader Trump-linked crypto portfolio that includes prior NFT activity and other ventures. 

The project has leaned heavily on the role of the Trump brand in marketing and adoption, as well as questions about how political prominence intersects with commercial growth.

Separately, the group has sought to deepen its regulatory footprint through a national trust charter bid designed to bring issuance, custody, and conversion of USD1 under a single federally regulated entity. 

That application has drawn attention because it would require a decision by the Office of the Comptroller of the Currency, an agency whose leadership is appointed by the White House. The business itself has close ties to the First Family through ownership and revenue-sharing arrangements.