US lawmakers stepped up pressure on Friday over a reported foreign stake in a crypto firm linked to US President Donald Trump, calling on the Treasury’s foreign-investment watchdog to explain whether the deal poses a national security threat or should be reviewed.
Trump and the $500 million deal
An Abu Dhabi-linked vehicle paid about $500 million for a 49% stake in World Liberty Financial (WLFI), reports said. That investment is said to have put a foreign investor in line to become the largest outside shareholder and win board seats.
Based on reports, critics are concerned about what access a large shareholder might have to customer data, system control, or strategic decision making in a company that handles stablecoins and user wallets.
Sheikh named as a supporter
The accounts point to an investment vehicle linked to Sheikh Tahnoun bin Zayed Al Nahyan. Reports say the deal is set to be completed in January 2025, a timeline that has drawn extra attention from legislators as the transition nears in Washington.
Some of the money from the transaction was allegedly sent to entities linked to the company’s founders and associates. That description has raised questions about disclosures and whether any rules governing overseas deals were followed.
Lawmakers want answers
Massachusetts Senator Elizabeth Warren and New Jersey Senator Andy Kim have written to Scott Besant asking whether the Committee on Foreign Investment in the US – CFIUS – should review the transaction or launch a formal investigation into the Trump-linked crypto venture now.
Lawmakers set a deadline for a response and asked for documentation and clear statements on any national security concerns. Their letter presents the case as a matter of foreign access to sensitive financial and identity information and the potential impact on a firm linked to a sitting president.
Image: WEEX
Board appointments and technical ties add to scrutiny
G42-linked executives were named to the company’s board following the deal, reports said. That link has raised new questions, as the G42 has been scrutinized in previous US intelligence reviews for its foreign partnerships.
Lawmakers say that when an investor contacts a foreign government official or agency, such connections need to be closely monitored.
Trump-linked crypto: what happens next
If CFIUS launches a formal review, it could demand documents, interview officials and impose mitigation measures or block parts of the deal. If no review is initiated, lawmakers say they will apply further pressure through oversight hearings and document requests.
The unfolding investigation highlights a number of issues: foreign capital in crypto, the management of consumer data, and how political ties intersect with cross-border investments.
Featured image by David Hume Kennerley/Getty Images, chart from TradingView
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