A US House investigation is looking into whether World Liberty Financial, a Trump-associated crypto firm, and its dollar-pegged token became entangled with foreign sovereign capital and US 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 panel of the US House of Representatives that investigates and studies how China affects US interests) sent a formal letter demanding ownership records, payment details and internal company communications, framing the investigation around potential conflicts of interest, national security risks linked to AI chip export controls and the role of the World Liberty $1 stablecoin in a separate $2 billion investment in Binance.
Khanna’s letter asks World Liberty to confirm details of the reported Emirati investment, including whether $187 million flowed 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, records of board appointments and due diligence materials linked to Aryam Investment 1, the vehicle identified in media reports.
A major part of the investigation focuses on USD1, World Liberty’s dollar-pegged stablecoin, which was used to liquidate MGX’s $2 billion investment in cryptocurrency exchange Binance.
Khanna and lawmakers are seeking documentation on how USD1 was selected, the revenue generated by the transaction and whether company staff were involved in discussions over the subsequent presidential pardon of Binance founder Changpeng Zhao.
The House committee also instructs the company to preserve electronic communications and internal compliance policies related to conflicts of interest, export controls and dealings with entities linked to the United Arab Emirates or China.
World Liberty has until March 1 to deliver the requested records.
