How a Secret $500M Abu Dhabi Deal Drags Trump’s WLFI Into Congress

Washington is buzzing with a major investigation after it came out that a royal from Abu Dhabi secretly put $500 million into a cryptocurrency company connected to the Trump family. The deal has raised serious questions about foreign influence, potential conflicts of interest, and even national security.

The company in question is World Liberty Financial (WLFI), a crypto firm linked to the Trump family. Lawmakers are now digging into how the deal was made, who got the money, and whether the company’s cryptocurrency played a role in other big crypto deals.

The deal that shook Washington

According to reports first published by The Wall Street Journal (WSJ), in January 2025, shortly before Donald Trump’s presidential inauguration, lieutenants to Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates (UAE) national security adviser, sometimes called the “spy sheikh,” reached a secret agreement to buy a 49% stake in WLFI for $500 million.

Half of that investment, about $187 million, went directly to Trump family entities, while $31 million went to entities tied to Steve Witkoff, a co-founder of WLFI and Trump’s incoming Middle East envoy, and another $31 million went to two other co-founders, Zak Folkman and Chase Herro.

The timing and secrecy of the deal immediately raised eyebrows. Five months later, the U.S. government granted the U.A.E. access to around 500,000 advanced AI chips, previously restricted due to concerns that the sensitive technology could reach China.

Critics say the combination of a secret foreign investment and subsequent government decisions creates serious questions about conflicts of interest and national security.

House investigation launched

California Representative Ro Khanna, ranking Democrat on the House Select Committee on the Chinese Communist Party, has launched a formal investigation into the deal. Khanna sent a letter to WLFI CEO Zach Witkoff, requesting detailed ownership records, payment flows, internal communications, and documentation of the company’s due diligence process.

“These arrangements are not just a scandal, but may even represent a violation of multiple laws and the United States Constitution,” Khanna wrote. “Our ability to successfully outcompete the Chinese Communist Party depends on the integrity of our policymaking process.”

Khanna also alerted Delaware U.S. Attorney Ben Wallace to review the investment vehicle, Aryam Investment 1, which was used to facilitate the Abu Dhabi stake. WLFI has until March 1, 2026, to deliver the requested records.

What the House letter reveals

According to the House Select Committee’s official letter, lawmakers believe the Trump family and WLFI’s founders may control around 75% of the company’s profits, largely generated through token sales and stablecoin-related activity. 

The committee also said Sheikh Tahnoon’s investment raises heightened concern because of his role as the UAE’s National Security Adviser and his links to state-backed technology firms such as G42 and MGX.

The letter further states that the committee is examining whether the $500 million investment coincided with or influenced U.S. policy decisions, including changes to export controls on advanced AI chips to the UAE. 

Lawmakers asked WLFI to provide all communications related to AI export policy, U.S.-UAE discussions, and any dealings connected to China-related matters.

The committee has posed 16 specific questions to WLFI, including who initiated the deal, whether the remaining portion of the $500 million has been paid, and what due diligence was conducted on the Emirati investment vehicle Aryam Investment 1. 

The letter also asks for documents related to WLFI’s USD1 stablecoin, including how it was selected for a $2 billion Binance transaction, how much revenue it generated, and whether any WLFI officials were involved in discussions surrounding the later pardon of Binance Co-Founder Changpeng Zhao (CZ).

What lawmakers want to know

The House investigation is looking at several areas:

• Financial flows: How the $500 million was distributed among the Trump family, co-founders, and Abu Dhabi-linked investors.
• Governance: Who sits on WLFI’s board, including two lieutenants of Sheikh Tahnoon who joined in January 2025.
• Company policies: Internal rules on conflicts of interest, foreign influence, and due diligence.
• Crypto involvement: WLFI’s USD1 stablecoin played a role in settling a $2 billion investment in Binance by MGX. Lawmakers want to know how the stablecoin was chosen, how much revenue it generated, and whether company officials were involved in discussions that preceded the later pardon of Changpeng Zhao (CZ).

This investigation is not only about money—it also examines whether foreign investments could have affected U.S. technology policy and whether a private company with close ties to the president could shape policy decisions.

Washington reacts

The deal has sparked intense debate on Capitol Hill. During a House Financial Services Committee hearing, Representative Gregory Meeks demanded that the Treasury pause WLFI’s application for a U.S. banking license until the investigation is complete.

“Stop covering for the president! Stop being his flunky!” Meeks shouted during the hearing.

Democratic Senators, including Elizabeth Warren and Adam Schiff, have called for testimony from WLFI co-founders and other figures involved in the deal. Schiff called it “corruption in plain sight.” Warren wants to examine the connections between foreign capital, WLFI, and U.S. government decisions.

Republicans have been quieter, with Senator Bernie Moreno criticizing Democrats for “levying absurd accusations of criminal wrongdoing without any actual evidence,” though Republican megadonor Ken Griffin expressed concern that deals benefiting presidential families raise questions about whether the public interest is being served.

Trump’s response

When asked about the deal, President Trump said, “Well, I don’t know about it. I know that crypto is a big thing, and they like it, a lot of people like it. My sons are handling that. My family is handling it. I guess they get investments from different people, but I’m not—I have all I can handle right now. I’m a big crypto person. I’m the one who probably helped crypto more than anybody because I believe in it.”

Deputy Attorney General Todd Blanche added, “I don’t have a comment on it beyond—President Trump has been completely transparent. When his family travels for business reasons, they don’t do so in secret.… We learn about it when it’s happening.”

Why this matters

The WLFI case is shaping up to be one of the most controversial intersections of crypto, politics, and foreign influence in recent U.S. history. The questions raised go beyond dollars—they involve national security, government ethics, and the influence of foreign capital on American business and policy.

People in government, investigators, and the public are now closely watching to see if WLFI’s deal with the U.A.E. affected decisions about AI technology exports, if crypto transactions influenced government actions, and what the wider effects of this $500 million investment might be.

For anyone following the story, it raises important questions: Should foreign officials be allowed to own big stakes in companies connected to a U.S. president? Can private business deals influence major government policies? And how open and transparent are crypto businesses linked to powerful political families?

This investigation could set new rules for how crypto and politics intersect in the future.

Also Read: Could Kevin Warsh’s Crypto Ties Boost Trump’s Financial Play?

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.