House Democrats Launch Probe Into Trump Linked WLFI’s Alleged $500M UAE Deal — More Bloodbath For Crypto?
House Democrats have launched a formal investigation into a $500 million investment by a UAE-linked entity, Aryam Investment 1, into World Liberty Financial (WLFI), a cryptocurrency project tied to the Trump family. The deal was signed just days before Donald Trump’s second inauguration and routed millions to Trump-affiliated entities. Lawmakers, led by Rep. Ro Khanna, are examining potential conflicts of interest, foreign influence, and violations of federal ethics laws.
The probe follows a Wall Street Journal report detailing the transaction, which involved Sheikh Tahnoon bin Zayed Al Nahyan, a senior UAE royal and national security adviser. The deal valued WLFI at $1 billion and reduced the Trump family’s stake from 75% to 38%. Eric Trump signed the agreement on WLFI’s behalf.
The investigation has increased volatility in crypto markets, affecting Bitcoin and politically linked tokens. WLFI’s governance token fell sharply amid the news. Lawmakers have requested extensive documentation from WLFI, citing concerns about the deal’s timing, structure, and beneficiaries, as well as its implications for U.S. national security and crypto regulation.
ccn.com02/07 13:18