Lawmakers Demand Records in $500M UAE Stake in World Liberty Financial

TLDR

• Congress probes WLFI over hidden $500M UAE stake and security concerns
• Lawmakers demand records on crypto payments and Trump-linked transfers
• USD1 stablecoin role in Binance deal triggers fresh oversight alarms
• UAE board ties raise influence and governance risk questions in WLFI
• Inquiry links foreign funding to tech policy and export control fears

U.S. lawmakers opened a new inquiry into WLFI after reports of a hidden $500 million UAE-linked stake surfaced. The probe targets possible conflicts of interest and national-security issues tied to the company’s operations. The committee requested detailed records as WLFI faces growing scrutiny over foreign ties and its expanding crypto footprint.

UAE Stake Inquiry Intensifies

House officials launched the review after a report indicated that an Abu Dhabi-associated entity agreed to buy 49% of WLFI. The committee said the arrangement emerged shortly before the presidential inauguration and raised policy concerns.  Lawmakers now want ownership data, payment records and internal communications.

They also pressed WLFI to outline any funds directed to Trump-related entities and to identify other beneficiaries. These questions cover alleged transfers of $187 million and additional payments linked to the company’s co-founders. The inquiry further seeks documents involving Aryam Investment 1, the UAE vehicle reported in the deal.

Officials argued that the alleged stake may intersect with U.S. technology matters and export-control decisions. They noted that major foreign capital flows could influence sensitive policy areas. They ordered WLFI to preserve materials tied to its foreign engagements and compliance systems.

Stablecoin USD1 Draws Added Attention

Lawmakers highlighted WLFI’s USD1 stablecoin because it supported a $2 billion settlement for a Binance investment by MGX. They said this transaction may have strengthened USD1 and may have enhanced WLFI revenues during rapid market expansion. Additionally, they asked to see documents describing the token’s selection and economic impact.

They also requested clarity on internal discussions tied to the Binance founder’s later pardon. Members explained that any involvement by WLFI personnel could create conflicts requiring formal review. Therefore, they urged timely disclosure to support a complete assessment.

The committee emphasized that USD1’s rising role in major settlements introduces broader oversight needs. They added that WLFI now operates within sensitive global networks involving strategic jurisdictions. Thus, they expect the company to produce all records by March 1.

WLFI Faces Wider Policy Questions

WLFI has faced repeated criticism from Democratic lawmakers who argue that the firm’s growth requires deeper oversight. They said the new allegations broaden past concerns involving cross-border financing and emerging technology channels. Moreover, they believe the reported UAE ties justify stronger scrutiny of operational risks.

Background records show that two UAE-linked figures later joined the WLFI board. Analysts say this detail could frame future questions about influence in corporate governance. Officials stated that these developments require careful review to ensure compliance with national standards.

The committee also referenced ongoing debates over advanced chip export controls. They said any foreign role in WLFI could intersect with evolving rules linked to China and regional partners. As a result, the inquiry aims to determine whether external capital shaped U.S. positions on sensitive technology matters.

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