House Probe Targets Trump’s World Liberty Financial Over Secret $500M UAE Stake

The Receipt

Ranking Member Rep. Ro Khanna (D-CA) formally launched an investigation into World Liberty Financial (WLFI) Thursday, demanding records tied to a reported $500 million investment from a UAE state-linked entity. The probe focuses on whether the Trump family’s crypto venture served as a conduit for foreign influence over U.S. export controls on advanced AI hardware.

WLFI traded with high volatility following the news, hovering around $0.13 as traders assessed the governance risks facing the project’s $5.1 billion stablecoin ecosystem.

The $500M “Blind Spot”

The investigation centers on a deal signed in January 2025, just days before President Trump’s second inauguration. According to Khanna’s letter and earlier reporting, Aryam Investment 1, an Abu Dhabi vehicle backed by UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, agreed to purchase a 49% stake in World Liberty Financial.

Terms of the deal reportedly funneled $187 million directly to Trump-controlled entities, despite the platform having no live product at the time. The House Select Committee on the CCP is now scrutinizing whether this capital injection coincided with the administration’s decision to soften restrictions on exporting high-end Nvidia AI chips to the UAE.

“These arrangements are not just a scandal, but may even represent a violation of multiple laws and the United States Constitution,” Khanna wrote in letters to WLF CEO Zach Witkoff and the U.S. Attorney for Delaware.

The Stablecoin Routing Layer

Beyond the equity stake, the probe targets the operational mechanics of WLFI’s USD1 stablecoin. The committee cited reports that MGX, another UAE-linked firm, utilized USD1 to route approximately $2 billion into Binance.

This volume catapulted USD1 into the top tier of stablecoin assets (current market cap: ~$5.12B) virtually overnight. Regulators are now questioning if the token’s rapid adoption was organic market demand or a geopolitical instrument to bypass traditional banking rails for state-level capital flows.

Market Reaction

President Trump dismissed the allegations, stating, “My sons are handling that,” and denying personal involvement in the financing structure. The market remains skeptical. While USD1 held its peg, WLFI’s governance token has struggled to reclaim its previous highs, currently down over 60% from its all-time peak as the threat of subpoena-driven delistings or frozen assets looms.