Senators Call for CFIUS Investigation of $500 Million UAE Investment in Trump-Associated WLFI

Washington is facing a new challenge regarding cryptocurrency. Two U.S. Senators are urging Treasury Secretary Scott Bessent to initiate an urgent national security assessment concerning a $500 million foreign investment in World Liberty Financial.

The situation becomes more critical as the funds originate from a UAE-backed investment entity, reportedly granting foreign investors a 49% share in the Trump-associated crypto initiative. This represents a significant portion.

The timing adds to the urgency. This issue emerged just days following the inauguration, raising alarms about who may have access to sensitive financial or user information.

Key Takeaways

• Senators Elizabeth Warren and Andy Kim have formally requested a CFIUS investigation into a UAE-backed entity acquiring 49% of WLFI.
• The $500 million transaction allegedly directs $187 million to entities linked to the Trump family, raising concerns about conflicts of interest.
• Lawmakers contend that the arrangement provides foreign entities with potentially dangerous influence over a company that collects sensitive U.S. financial data.

The Deal and the Threat

In a letter dispatched on Friday, Senators Elizabeth Warren and Andy Kim inquired whether CFIUS had been notified about the transaction.

The deal would allow a UAE-backed investment vehicle to obtain nearly 49% of World Liberty Financial, a DeFi project heavily endorsed by the Trump family. This is not an insignificant stake.

Reports associate the funding with Sheikh Tahnoon bin Zayed Al Nahyan, the UAE national security adviser. If completed, the foreign fund would instantly become the largest shareholder.

Source: Tahnoon bin Zayed Al Nahyan And Trump / UAE Embassy

This development coincides with Trump-affiliated ventures increasingly delving into cryptocurrency, drawing more attention to the situation.

The underlying issue revolves around influence. A $500 million investment is not merely passive. It can provide access, leverage, and potentially sensitive internal information. For a project associated with a sitting President’s family, the mere optics are sufficient to ignite political controversy.

National Security Red Flags

The concern extends beyond the $500 million. It pertains to the data.

Senators highlighted that WLFI’s privacy policy acknowledges the collection of wallet addresses, device identifiers, and even approximate location data. If a foreign-backed fund gains control over a company that possesses such financial information, it raises significant national security concerns.

The letter also mentions executives linked to G42, a technology firm that has come under U.S. scrutiny for alleged connections to China.

GM family — BIG ANNOUNCEMENT! Watch what our co‑founder @DonaldJTrumpJr has to say about the World Liberty Forum. pic.twitter.com/rkTocmlkem

— WLFI (@worldlibertyfi) January 20, 2026

Warren and Kim are seeking confirmation by March 5 regarding whether a formal review is in progress. With the Treasury advocating for clearer cryptocurrency regulations, overlooking a potential security vulnerability related to presidential business interests could lead to a political upheaval.

This situation is developing as the broader Trump-linked cryptocurrency network continues to grow. Reports indicate that approximately $187 million from the deal would be directed to entities associated with the Trump family, complicating matters further.

Will The Deal Unwind?

If CFIUS intervenes, the situation could escalate. The committee possesses the authority to retroactively unwind transactions, particularly if cybersecurity or national security threats are present. High-profile foreign investments with political connections seldom evade scrutiny.

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As cryptocurrency increasingly intersects with federal oversight, headlines of this nature can rapidly influence markets. Should the Treasury confirm an active review, expect a surge in volatility.

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