A U.S. House investigation is scrutinizing World Liberty Financial and its USD1 stablecoin over potential connections to foreign capital and U.S. technology policy concerns. At the center of this probe is a $500 million investment by an Abu Dhabi-linked entity, acquiring 49% of World Liberty Financial just before President Trump’s inauguration in 2025.
Additionally, the investigation focuses on a $2 billion investment in Binance involving the USD1 stablecoin, exploring potential conflicts of interest and national security implications. The inquiry includes examining ownership records and payments possibly linked to the Trump family.
Wall Street Journal reported that an Abu Dhabi-linked entity secretly agreed to acquire a 49% stake in World Liberty Financial for $500 million shortly before President Trump’s inauguration in early 2025. The reported agreement involved the purchase of a near-half ownership interest in the company and was described as secret in its timing relative to the inauguration.
The investor group behind the transaction was described in the report as linked to Sheikh Tahnoon bin Zayed Al Nahyan. The report also said that two senior figures connected to Sheikh Tahnoon’s network joined World Liberty’s board after the agreement. Those board appointments were cited in the same reporting as direct connections between the investor group and World Liberty’s governance.
The report identified the timing, ownership percentage and purchase price as central elements of the disclosed agreement.
Representative Ro Khanna demanded comprehensive records from World Liberty Financial in connection with ongoing investigations. The requirements include ownership records, payment specifics, internal communications, and due diligence materials associated with Aryam Investment 1. The focus of this inquiry extends to potential conflicts of interest and national-security risks, particularly concerning AI chip export controls.
Khanna is investigating whether payments amounting to $187 million or more were made to Trump family entities. Additionally, the House committee instructed World Liberty to preserve electronic communications and internal compliance policies related to any dealings with entities from the UAE or China. These preservation orders aim to maintain critical data needed to assess potential foreign influences and verify compliance with U.S. export regulations. World Liberty is required to provide the requested documents by March 2026.
A significant portion of the House investigation concentrates on USD1, which was used to settle MGX’s $2 billion investment in Binance. Representative Ro Khanna has linked the stablecoin’s use in that transaction to potential increases in fees and revenues for the USD1 project and its shareholders, and he raised those concerns in a formal letter to the committee. The committee’s review addresses the mechanics of the Binance investment insofar as they relate to foreign capital and U.S. technology-policy concerns already under inquiry.
Reporting connected the Binance investment to related policy developments, including decisions regarding AI chip export controls and a presidential pardon granted to Binance founder Changpeng Zhao. The investigation therefore treats USD1’s role in the Binance transaction as a central matter for examination by the House committee in its review.
House investigation centers on transparency, conflicts of interest, national security, and foreign influence concerns tied to World Liberty Financial, the reported $500 million Abu Dhabi-linked stake, and the USD1 stablecoin. The inquiry examines ownership and payment records, governance changes, and the stablecoin’s role in a related Binance investment as part of broader scrutiny of potential foreign capital links and U.S. technology-policy implications.
