A U.S. House of Representatives investigation aims to determine whether Trump-associated crypto firm World Liberty Financial and its dollar-pegged token meddled with foreign sovereign capital and U.S. technology policy.
The move follows a Wall Street Journal report that an Abu Dhabi-linked entity secretly agreed to buy a 49% stake in World Liberty Financial for $500 million, shortly before President Donald Trump’s inauguration in early 2025.
Rep. Ro Khanna (D-Penn.), ranking member of the House Select Committee on the Chinese Communist Party — a temporary committee of the U.S. House of Representatives that investigates and studies how China affects U.S. interests — sent a formal letter demanding the company’s ownership records, payment details and internal communications, framing the investigation into potential conflicts of interest, national security risks related to AI chip export controls and the role of World Liberty’s $1 stablecoin in a separate $2 billion Binance investment.
Khanna’s letter asks World Liberty to confirm details of the reported Emirati investment, including whether $187 million was paid to Trump family entities and whether additional payments were made to affiliates of the company’s co-founders.
The House investigation also requested capitalization tables, profit distributions, board nomination records and due diligence documents related to Aryam Investment 1, the vehicle identified in the news reports.
A significant portion of the investigation focuses on USD1, World Liberty’s dollar-pegged stablecoin, which was used to settle MGX’s $2 billion investment in crypto exchange Binance.
Khanna and the lawmakers are seeking documents on how USD1 was selected, the revenue generated by the transaction and whether company personnel were involved in discussions regarding the subsequent presidential pardon of Binance founder Changpeng Zhao.
The House committee also requires the company to safeguard electronic communications and internal compliance policies related to conflicts of interest, export controls and relationships with entities linked to the United Arab Emirates or China.
World Liberty has until March 1 to deliver the requested records.
