Trump Crypto Firm Faces House Probe Over Secret $500M UAE Deal

A Trump-linked crypto venture that allegedly received $500 million from Middle Eastern investors just before the president's inauguration now faces a full congressional investigation—raising questions about foreign influence, national security, and the murky intersection of politics and digital assets.

The Secret Deal That Sparked Congressional Attention

World Liberty Financial, the crypto firm co-founded by Eric Trump and Zak Folkman, is under scrutiny following Wall Street Journal reports of a secretive agreement that gave an Abu Dhabi-connected entity a 49% stake for $500 million shortly before Donald Trump's 2025 inauguration.

Rep. Ro Khanna (D-Penn), ranking member of the House Select Committee on the Chinese Communist Party, has demanded comprehensive records from the company. His formal letter seeks ownership documentation, payment trails, and internal communications—particularly whether $187 million flowed to Trump family entities and how Aryam Investment 1, the Emirati vehicle, structured its involvement.

The investigation extends beyond simple foreign investment concerns. Khanna's inquiry frames the probe around potential conflicts of interest, national security risks tied to AI chip export controls, and how foreign sovereign capital might influence U.S. technology policy.

This isn't just about money changing hands—it's about whether crypto ventures can serve as backdoor channels for foreign influence in American policymaking.

USD1 Stablecoin: The Binance Connection

A significant focus of the investigation centers on World Liberty's dollar-pegged stablecoin, USD1, which was used to settle MGX's$2 billion investment in crypto exchange Binance. Lawmakers want to understand how USD1 was selected for this massive transaction, what revenue the company generated, and whether World Liberty personnel were involved in discussions preceding Trump's later presidential pardon of Binance founder Changpeng Zhao.

The timing raises eyebrows: a Trump-linked stablecoin facilitating a major Binance investment, followed by a presidential pardon for Binance's founder. Congressional investigators are connecting these dots, seeking to understand whether the company's business relationships influenced policy decisions.

The stablecoin angle is particularly sensitive because it represents a direct bridge between traditional finance and crypto markets—exactly the kind of infrastructure that foreign actors might seek to influence or control.

March 1 Deadline: What Documents Will Reveal

World Liberty Financial has until March 1 to produce the requested materials, including capitalization tables, profit distributions, board appointment records, and due diligence materials tied to the Emirati investment. The committee has also instructed the company to preserve electronic communications and internal compliance policies related to export controls and dealings with UAE or Chinese entities.

The scope of document requests suggests lawmakers suspect this case extends beyond a single investment deal. They're looking for patterns of foreign engagement, compliance failures, and potential policy influence that could reshape how Congress regulates crypto firms with political connections.

For crypto investors, this investigation represents a new category of regulatory risk: not just traditional financial oversight, but national security scrutiny of foreign investment in politically connected crypto ventures.