Donald Trump’s crypto project is back in Washington’s crosshairs. Ro Khanna, the senior Democrat on the House Select Committee on China, has launched a probe into World Liberty Financial (WLFI). The trigger was a massive investment from an entity affiliated with the UAE National Security Advisor. At stake is $0.5 B, and lawmakers view this as a potential national security threat.
Details on WLFI Ties to the Sheikh
It has emerged that Sheikh Tahnoon bin Zayed Al Nahyan is the man behind the massive check. According to the Wall Street Journal, the Sheikh’s entity secured a 49% stake in the project in exchange for $500 M.
Khanna is convinced the Emirates’ interest extends far beyond tokens and DeFi. He links the deal to the UAE’s persistent efforts to gain access to advanced American AI chips. The politician warned that such agreements could violate US laws and even the Constitution. In his view, the US ability to compete with China depends directly on the transparency of decision-making in Washington.
16 Uncomfortable Questions
The Congressman didn’t waste time, firing off a stern letter to WLFI CEO Zach Witkoff. The document demands full disclosure of the agreement details with Tahnoon. Khanna requested data on revenue distribution, conflict of interest policies, and protocols for handling foreign funds. The list includes 16 specific questions the project must answer.
At the same time, Khanna called on a federal prosecutor to join the scrutiny. The situation is heating up, with more than a dozen Democrats already publicly condemning the deal.
It’s Not Me, It’s the Sons
Trump himself predictably distanced himself from the deal’s specifics. On Monday, he claimed he knew nothing about the $500 M tranche. The President emphasized that all operational matters are handled by his sons and family, while he remains uninvolved in the process. However, given Trump’s position and the high profile of the UAE investor, this plea of ignorance is unlikely to satisfy those driving the investigation.
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