House Democrats Probe Trump-Linked Crypto Firm Over $500M UAE Investment

US House Democrats have launched an investigation into a reported US$500 million (AU$722m) investment made by an entity linked to the United Arab Emirates (UAE) royal family into the Trump family-owned DeFi project, World Liberty Financial (WLFI).

The investigation was revealed in a report from the Wall Street Journal (WSJ) published Wednesday, with Californian Democratic Representative Ro Khanna subsequently posting on X / Twitter on Thursday that he’d been behind the investigation.

“I have launched an investigation as ranking member of the Select Committee on China into a $500 million UAE investment in the Trump family’s cryptocurrency company,” Khanna wrote.

This is about public trust and transparency.

US Representative Ro Khanna

Donald Trump had (perhaps implausibly) previously denied any knowledge of the investment, saying Monday “I don’t know about it…my sons are handling that — my family is handling it.”

According to the WSJ report, the man behind the investment in Trump-owned WLFI was Sheikh Tahnoon bin Zayed Al Nahyan, a prominent Emirati politician who has served as the UAE’s National Security Adviser since 2016.

Tahnoon’s US$500 million investment in WLFI bought the UAE a 49% ownership stake in WLFI. The WSJ report also claimed that Tahnoon sought access to tightly restricted advanced artificial intelligence computer chips as part of the deal.

As part of his investigation, Khanna sent a letter containing a list of questions to WLFI CEO, Zach Witkoff (coincidentally also the son of Trump’s Middle East Envoy, Steve Witkoff), seeking clarification about the specific details of the investment deal. Khanna has also sought records relating to WLFI’s profit and revenue distribution and information detailing how conflicts of interest have been managed.

Khanna also referenced other “problematic entanglements” between WLFI, the Trump family and the UAE — including the use of WLFI’s USD1 stablecoin to “facilitate a $2 billion investment by the Emiratis into Binance.”

Khanna claimed that the Trump family’s dealings with the UAE may involve numerous serious crimes and possibly even breaches of the US Constitution. 

These arrangements are not just a scandal, but may even represent a violation of multiple laws and the US Constitution.

US Representative Ro Khanna

Related: UAE-Backed Fund Bought 49% of Trump-Linked Crypto Firm Ahead of White House Return

Khanna a Proponent of Banning Senior Government Officials From Owning Crypto

In October last year, Khanna introduced legislation that would ban senior government officials — including the president, vice president, members of Congress, and their immediate families — from trading crypto, citing concerns over conflicts of interest and foreign interference.

Khanna’s eagerness to see greater regulation and oversight of the industry reflects the broader political chasm in Washington between the pro-crypto Republicans and the Democrats, who are increasingly focussed on curtailing corruption and conflict of interest connected to crypto.

Related: Treasury Secretary Bessent Questioned Over Trump-Linked Crypto Firm and Bitcoin Oversight

Khanna has also been a strong supporter of increased transparency around the Epstein files and, on February 5, called for every person who emailed Epstein about visiting his notorious island to be hauled before the US Congress to explain themselves.

The latest tranche of Epstein files revealed that early Bitcoin contributor and co-founder of Blockstream, Adam Back, likely visited Epstein’s island in 2014. The files also revealed Epstein was an early investor in Blockstream and other crypto startups, including Coinbase.