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Congressional investigators pursue ownership documentation, transaction trails, and stablecoin records from the crypto firm associated with Trump following allegations of Emirati investment and its USD1 token’s involvement in a $2 billion Binance deal
Zak Folkman, co-founder of the Trump crypto venture World Liberty, and Eric Trump address attendees at Consensus 2025 in Toronto (CoinDesk)
Key points to note:
- The House investigation is examining World Liberty Financial, a crypto company linked to Trump, regarding a reported undisclosed $500 million agreement that granted an Abu Dhabi-affiliated entity a 49 percent ownership shortly before Donald Trump’s inauguration in 2025.
- Representative Ro Khanna has requested comprehensive ownership, payment, and governance documents, including inquiries into whether $187 million was directed to Trump family entities and the involvement of Emirati entity Aryam Investment 1.
- The inquiry focuses on World Liberty’s USD1 stablecoin and its significance in a $2 billion Binance investment, as well as the company’s role in discussions leading up to Trump’s subsequent pardon of Binance founder Changpeng Zhao, with records required by March 1.
A U.S. House investigation is exploring whether World Liberty Financial, a crypto initiative associated with Trump, along with its dollar-pegged token, became intertwined with foreign sovereign capital and U.S. technology regulations.
This action follows a Wall Street Journal report indicating that an Abu Dhabi-related entity covertly arranged to acquire a 49% share in World Liberty Financial for $500 million shortly before President Donald Trump’s inauguration in early 2025.
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Representative Ro Khanna (D-Penn), the ranking member of the House Select Committee on the Chinese Communist Party—a temporary U.S. House panel that investigates the implications of China on U.S. interests—has issued a formal letter requesting ownership documents, payment information, and internal correspondence from the firm, centering the inquiry on possible conflicts of interest, national security concerns related to AI chip export regulations, and the role of World Liberty’s USD1 stablecoin in a separate $2 billion Binance investment.
Khanna’s letter seeks confirmation from World Liberty regarding the reported Emirati investment, particularly whether $187 million was allocated to Trump family entities and if further payments were made to affiliates of the company’s co-founders.
The House investigation has also asked for capitalization tables, profit distribution records, board appointment documentation, and due diligence materials related to Aryam Investment 1, the entity mentioned in news reports.
A significant aspect of this inquiry revolves around USD1, World Liberty’s dollar-pegged stablecoin, which facilitated MGX’s $2 billion investment in the crypto exchange Binance.
Khanna and other lawmakers are looking for documentation on the selection process for USD1, the revenue generated from the transaction, and whether company personnel participated in discussions regarding the later presidential pardon of Binance founder Changpeng Zhao.
The House committee has also directed the company to maintain electronic communications and internal compliance policies concerning conflicts of interest, export controls, and interactions with entities associated with the United Arab Emirates or China.
World Liberty has until March 1 to provide the requested documentation.
