Trump’s World Liberty Faces House Probe Amid Claims of Major UAE Investment

House investigators are looking into World Liberty Financial over the alleged secret deal worth $500 million with the UAE. This is after the release of a report that the company gave an entity linked with the UAE a 49% stake in the company.

House Launches Investigation on World Liberty Amid UAE Deal

A ranking member of the House Select Committee, Rep. Ro Khanna, has sent a letter to WLFI. He asked for payment details and communication on the UAE deal. The investigation is aimed at establishing conflicts of interest and national security concerns over AI chip export controls.

He also investigated the use of USD1 in a $2 billion deal with Binance. The probe came after a report by WSJ saying that a secret deal worth $500 million was reached by this entity to acquire a stake in the company.

In his letter to World Liberty, Khanna asked for information about the status of the UAE deal. He asked whether the $187 million was channeled to the Trump family businesses and whether other amounts were paid to the affiliates of the company’s co-founders.

In addition, when the United States president was asked on Monday regarding the details of the deal with the UAE, he denied the claims.

“I don’t know about it,” Trump said. “I know that crypto is a big thing.” “My sons are handling that, my family is handling it, and I guess they get investments from different people.”

According to the paper,  at least $31 million was also to be paid to entities related to the family of Steve Witkoff, who is a co-founder of World Liberty. Also, an additional $31 million was to be paid to an entity related to the other two co-founders, Zak Folkman and Chase Herro.

WLFI Faces Additional Probe Over Binance Deal

Another major part of the House Investigation also relates to WLFI’s USD1. This stablecoin was recently used to settle the $2 billion investment in the crypto exchange Binance by MGX.

The lawmakers want to be presented with documentation on the choice of the stablecoin and the revenue it has generated for the company. The lawmakers also want to know whether the company’s officials took part in any talks relating to the pardon of Binance founder Changpeng Zhao.

The World Liberty Financial firm has always been in the face of legal scrutiny, especially from the Democrats. For example, Senator Warren has been the most vocal of the crypto firm because of the relationship with the President.

On this new investigation, the firm has until March 1 to deliver all the documentation requested by the lawmakers.