US legislators have heightened their scrutiny regarding a foreign investment in a cryptocurrency company linked to US President Donald Trump. They have urged the Treasury’s foreign-investment watchdog to clarify whether this deal poses a national security threat or warrants further investigation.
Trump’s Involvement in the $500 Million Transaction
Recent reports suggest that an entity associated with Abu Dhabi paid approximately $500 million for a 49% stake in World Liberty Financial (WLFI). This investment positioned a foreign investor as a significant shareholder and potential board member.
Concerns have been raised about the level of access a major shareholder could have to sensitive data, operational controls, and strategic decision-making within a company that handles stablecoins and user wallets.
Sheikh’s Alleged Backing of the Deal
Information indicates that an investment vehicle linked to Sheikh Tahnoon bin Zayed Al Nahyan was involved in the transaction. The deal reportedly closed in January 2025, a timeframe that has drawn attention due to the political transition in Washington.
Part of the transaction proceeds allegedly went to entities associated with the company’s founders and partners, raising concerns about transparency and compliance with regulations governing foreign investments.
Demands for Clarification from Lawmakers
Senators Elizabeth Warren and Andy Kim from Massachusetts and New Jersey, respectively, have written to Scott Bessent seeking information on whether the Committee on Foreign Investment in the US (CFIUS) has evaluated the transaction or should initiate a formal investigation into the Trump-connected crypto venture.
They have set a deadline for response, requesting documentation and a clear assessment of any national security risks. The focus is on potential foreign access to sensitive financial and personal data, as well as the influence on a company linked to a sitting president.
Image Source: WEEX
Scrutiny Intensified by Board Appointments and Tech Connections
After the transaction, individuals with ties to G42 were reportedly appointed to the company’s board, raising concerns given G42’s history in US intelligence reviews related to foreign collaborations.
Lawmakers emphasize the importance of investigating such connections, especially when the investor has links to a foreign government entity or official.
Future Steps Involving Trump-Linked Crypto Venture
If CFIUS proceeds with a formal review, it could request documentation, conduct interviews with executives, and implement measures to address concerns or block parts of the deal. Failure to initiate a review would prompt lawmakers to pursue oversight hearings and additional document requests.
This ongoing investigation underscores critical issues surrounding foreign investments in the cryptocurrency sector, data privacy, and the intersection of political influences with international financial transactions.
Featured image courtesy of David Hume Kennerly/Getty Images, chart provided by TradingView
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