U.S. Senators Urge Investigation into $500M UAE Investment in WLFI
By John Nada·Feb 15, 2026·7 min read
U.S. senators are demanding a Treasury investigation into a $500M UAE investment in World Liberty Financial, raising national security concerns.
Two U.S. senators are pressing the Treasury Department to investigate a reported foreign investment in a crypto venture tied to the Trump family, raising concerns about national security, foreign influence, and access to sensitive financial data. In a letter to Treasury Secretary Scott Bessent, Massachusetts Senator Elizabeth Warren and New Jersey Senator Andy Kim asked the government to determine whether the Committee on Foreign Investment in the United States (CFIUS) should investigate a deal in which a UAE-backed investment vehicle agreed to purchase a 49% stake in World Liberty Financial (WLFI) for roughly $500 million.
The lawmakers wrote that the transaction reportedly occurred days before Donald Trump’s inauguration and would make the foreign fund the firm’s largest shareholder and its only publicly known outside investor. They asked Bessent, who chairs CFIUS, to confirm whether the committee was notified and, if necessary, conduct a “comprehensive, thorough, and unbiased investigation.” This request underscores the senators' concerns about how foreign investments can impact sensitive sectors, particularly in the burgeoning field of cryptocurrency, which operates at the intersection of finance and technology.
The investment was reportedly backed by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser. This connection raises eyebrows given the prominent role of the UAE in the geopolitical landscape, and it prompts questions about the motivations behind such an investment. The agreement allegedly directed about $187 million to entities linked to the Trump family and granted two board seats to executives connected to G42, a technology company previously scrutinized by U.S. intelligence agencies over concerns about ties to China, per the letter. This aspect of the deal highlights the intricate web of relationships between foreign investors and U.S. businesses, especially in a sector as dynamic and unregulated as cryptocurrency.
Warren and Kim argued that the structure of the deal could allow a foreign government to gain influence over a U.S. company handling financial and personal information. They noted that the firm’s privacy disclosures indicate it collects data including wallet addresses, IP addresses, device identifiers, and approximate location data, along with certain identity records through service providers. Such data can be invaluable, not only for marketing and business development but also for potentially more nefarious purposes, including surveillance or data manipulation. CFIUS is tasked with reviewing foreign investments that could provide access to sensitive technologies or personal data belonging to U.S. citizens. The lawmakers requested answers by March 5, emphasizing the urgency of understanding the potential risks involved in allowing foreign entities to gain significant stakes in domestic firms managing critical information.
The senators' concerns are not unfounded. In recent years, there have been numerous instances where foreign investments in U.S. companies, particularly in technology and finance, have raised alarms among lawmakers and national security experts. The potential for foreign influence in a crypto venture that handles sensitive data is raising alarms about the integrity of financial systems. Given the unregulated nature of cryptocurrency and the rapid pace of technological advancement, this situation may reflect a broader trend where foreign entities seek to capitalize on the lack of stringent regulatory frameworks governing digital assets.
This isn't the first time WLFI has faced scrutiny. Last year, Senators Warren and Jack Reed also called on U.S. authorities to investigate alleged links between World Liberty Financial’s token sales and sanctioned foreign actors. In a Nov. letter to the Justice Department and Treasury, they cited claims that WLFI governance tokens were bought by blockchain addresses tied to North Korea’s Lazarus Group, as well as Russian- and Iranian-linked entities. These allegations not only put WLFI under the microscope but also indicate a growing concern regarding the potential for cryptocurrency to be used as a tool for illicit activities, including money laundering and circumventing sanctions.
Amid these developments, former President Trump has distanced himself from the investment, stating he has no direct involvement and that the matter is being managed by his family. Trump remarked that his sons are handling the investment and implied that various investors are involved. This assertion raises questions about the degree of oversight and governance within the Trump family’s business dealings, particularly when foreign investments are at play. As the former president steps back, the involvement of family members in significant financial dealings has the potential to create complex ethical and legal dilemmas, particularly when public trust and national security intersect.
The potential implications of this investment could resonate across the financial system, influencing both regulatory approaches and market confidence in crypto ventures tied to prominent figures. As regulatory scrutiny increases, this case may set a precedent for how foreign investments in the crypto sector are managed and monitored, potentially reshaping the landscape for future endeavors. The scrutiny of WLFI could lead to more stringent regulations governing foreign investments in the crypto space, which has often been viewed as a regulatory gray area.
The stakes are high in this situation. It is not merely about a $500 million investment; it is about the broader implications for U.S. national security and economic sovereignty. The involvement of a foreign government in a U.S. crypto firm that collects sensitive data raises critical questions about data privacy, cybersecurity, and the potential for foreign manipulation. If the CFIUS investigation reveals significant risks, it could prompt a reevaluation of how the U.S. handles foreign investments across various sectors, particularly those involving emerging technologies.
As the world becomes increasingly interconnected, the challenges posed by foreign investments in domestic companies will only become more pronounced. The WLFI case may serve as a bellwether for future dealings, showcasing the delicate balance between encouraging foreign investment and safeguarding national interests. The concerns raised by Senators Warren and Kim reflect a growing apprehension among lawmakers about the implications of foreign capital in sectors that are crucial to the nation's financial and technological infrastructure.
The Treasury Department's response to the senators' requests will be pivotal in determining the future of not just WLFI but the broader regulatory environment for foreign investments in U.S.-based crypto firms. As the lines between traditional finance and cryptocurrency continue to blur, the regulatory landscape must evolve to address these new challenges. The need for comprehensive, transparent, and effective oversight mechanisms is more pressing than ever to protect both national security and consumer interests in an era where digital assets are becoming increasingly mainstream.
The involvement of high-profile figures and the complexities surrounding foreign investments can complicate efforts to enforce regulations effectively. The scrutiny that WLFI is currently under could serve as a catalyst for broader discussions about the role of foreign capital in the cryptocurrency space and the need for enhanced regulatory frameworks that can adapt to the fast-changing landscape. As this situation unfolds, it will be essential for lawmakers, regulators, and industry stakeholders to engage in open dialogue to ensure that the U.S. remains a leader in innovation while safeguarding its national interests.
In the coming months, as the investigation progresses, stakeholders from various sectors will be watching closely. The outcome of this investigation could influence not only the future of WLFI but also the broader discourse on foreign investment in technology and finance. The implications of this case extend beyond any single transaction; they represent a critical juncture in how the United States navigates the complexities of globalization, technological advancement, and national security in an increasingly digital age.