Khanna connected the reported UAE stake to AI chip export manage concerns and recommended the deal, signed by Eric Trump days earlier than launch, may have influence US policy.
A US House investigation has turned its target to World Liberty Financial, a Trump-linked crypto project.
The move follows a current Wall Street Journal report of a $500M UAE-linked stake agreed imminently earlier than President Donald Trump’s inauguration.
Rep. Ro Khanna, a Democrat from California and the ranking member of the House Select Committee on the Chinese Communist Party, on Wednesday sent a letter to World Liberty co-founder Zach Witkoff searching for ownership records, payment details and internal communications tied to the reported deal and associated transactions.
Khanna wrote that the Journal said “lieutenants to an Abu Dhabi royal privately signed a deal with the Trump Family to buy a 49% stake in their new cryptocurrency project [World Liberty Financial] for half a billion dollars” imminently earlier than Trump took office.
He claimed the reported investment brings up inquiries about conflicts of interest, national security and whether US technology policy moved in ways that advantages the foreign capital tied to strategic priorities.
Meanwhile, Trump has said he had no knowledge of the deal. Talking to reporters on Monday, he stated he was not informed of the transaction and observed that his sons and other family members operate the business and get investments from numerous parties.
Crypto Project Deal Draws Security Over AI And National Security Policy Intersection
The letter also connected the reported stake to US export manages on advanced AI chips and worries about diversion to China via third nations.
Khanna stated the Journal report proposed the UAE-linked funding “may have led to big changes to U.S. Government policies formed to avoid the diversion of advanced artificial intelligence chips and associated computing capabilities to the People’s Republic of China.”
As per the Journal account mentioned in the letter, the settlement signed by Eric Trump days before the launch.
The investor group was explained as linked to Sheikh Tahnoon bin Zayed Al Nahyan, the UAE national security adviser. Two key executives linked to his network after that joined World Liberty’s board.
USD1 Stablecoin Use Brings Up Inquires Over Influence And Profits
Khanna’s letter highlighted to another UAE-linked deal including World Liberty’s USD1 stablecoin, which he stated was used to facilitate a $2B investment into Binance by MGX, an entity tied to Sheikh Tahnoon. He wrote that this use “supported catapult USD1 into one of the world’s largest stablecoins”, that can have accelerated fees and revenues for the venture and its shareholders.
The lawmaker also linked the Binance investment to later policy development, which consist chip export choices and a presidential pardon for Binance founder Changpeng Zhao.
He mentioned a former pardon attorney who stated, “The influence that money performed in procuring this pardon is exceptional. The self-dealing feature of the pardon in terms of the advantage that it granted on President Trump, and his family, and people in his inner circle is likewise unexceptional.”
Khanna portrayed the overall image as more than political optics. “Taken together, these preparations aren’t just a scandal, but may even reflect a violation of numerous laws and the USA Constitution,” he wrote, referring to conflict-of-interest rules and the Constitution’s Foreign Emoluments Clause.
Khanna Warns Of National Security Stakes In WLFI Case
He asked World Liberty to answer specified inquires and create documents by March 1, 2026, which include agreements tied to the reported 49% stake, payment flows, communications with UAE-linked representatives, board appointments, due diligence and records tied to the USD1 stablecoin’s role in the Binance transaction.
Khanna also pressed for details on any discussions around export management, US policy toward the UAE and strategic opposition with China, as well as communications associated with President Trump’s decision to pardon Zhao.
The probe lands at a moment when stablecoins sit closer to the center of marketplace structure debates, and whilst politically linked crypto projects face sharper inquiries about ownership, governance and access.
Khanna closed his letter with a warning about the stakes, writing, “Congress will not be supine amid this scandal and its unmistakable implications on our national security.”
