World Liberty Financial has found itself under fresh political scrutiny in Washington after a senior Democratic lawmaker launched a formal investigation into the crypto firm’s reported foreign ties.
In a letter dated Feb. 4, Representative Ro Khanna requested detailed information and documents from World Liberty Financial, following reports that an entity linked to the United Arab Emirates royal family acquired nearly a 49% stake in the company for around $500 million.
The inquiry adds a new layer of pressure to a firm already tied to political and crypto power centers, and it raises broader questions about foreign influence, national security, and the role of digital assets in global competition.
Why lawmakers are concerned
Khanna, the ranking member of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, described the reported transaction as deeply troubling. In his letter to World Liberty Financial co-founder Zach Witkoff, he said the deal could create “shocking and scandalous” conflicts of interest if foreign capital is able to influence U.S. policy decisions.
At the center of the concern is timing and scale. According to media reports cited in the letter, the alleged UAE-linked investment was finalized shortly before President Donald Trump’s inauguration. Lawmakers are questioning whether such a large foreign stake could intersect with U.S. decisions on sensitive issues like artificial intelligence export controls and economic competition with China.
Stablecoins and Binance ties under review
The probe goes beyond equity ownership. Khanna’s letter also points to World Liberty Financial’s stablecoin activity, particularly the reported use of its USD1 stablecoin to facilitate a $2 billion investment by UAE-linked firm MGX into Binance, one of the world’s largest crypto exchanges.
That connection has heightened concerns in Congress because of Binance’s historical links to China and its central role in global crypto markets. Lawmakers want to understand whether World Liberty Financial played an intermediary role and whether that involvement has implications for U.S. monetary policy, sanctions enforcement, or national security.
What Congress is asking for
Khanna’s document request is broad. It asks World Liberty Financial to confirm the details of the reported UAE investment, explain how the funds were distributed, and disclose any board appointments or governance rights tied to foreign entities.
The committee is also seeking communications related to U.S. export control policy, interactions with federal agencies, and any revenue or profit-sharing arrangements connected to the Binance transaction. The goal, according to the letter, is to ensure that U.S. policy decisions remain driven by national interests rather than private financial relationships with foreign governments.
What happens next
As of now, World Liberty Financial has not publicly responded to the inquiry. The investigation does not automatically imply wrongdoing, but it signals growing political sensitivity around crypto firms that operate at the intersection of finance, geopolitics, and emerging technology.
With stablecoins, cross-border investments, and crypto exchanges increasingly embedded in global capital flows, lawmakers appear intent on drawing clearer lines around transparency and influence. How World Liberty Financial responds could shape not only its own future, but also how Washington approaches oversight of politically connected crypto ventures going forward.
