Senators Push CFIUS Review of UAE’s $500M Stake in Trump-Tied WLFI

Two prominent United States senators have formally requested that the Treasury Department launch an investigation into a significant foreign investment linked to a cryptocurrency initiative associated with the Trump family. Their concerns center around potential risks to national security, undue foreign influence, and the possibility of unauthorized access to sensitive financial information belonging to American citizens.

Senators Demand Comprehensive CFIUS Examination

In a detailed letter dated Friday addressed to Treasury Secretary Scott Bessent, Senator Elizabeth Warren from Massachusetts and Senator Andy Kim from New Jersey urged the initiation of a review process by the Committee on Foreign Investment in the United States, known as CFIUS. The specific transaction under scrutiny involves a United Arab Emirates-backed investment entity that reportedly agreed to acquire a substantial 49 percent ownership stake in World Liberty Financial, or WLFI, for approximately $500 million.

According to the senators’ correspondence, this major deal was reportedly finalized just days prior to Donald Trump’s presidential inauguration. Upon completion, the UAE-supported fund would emerge as WLFI’s largest shareholder and its sole publicly identified external investor. The lawmakers specifically requested that Secretary Bessent, who holds the chairmanship of CFIUS, verify whether the committee had received proper notification of the transaction. Furthermore, they called for the panel to undertake a thorough, impartial, and exhaustive investigation if such notification was lacking or incomplete.

The letter highlights that the investment appears to have been supported by Sheikh Tahnoon bin Zayed Al Nahyan, who serves as the UAE’s national security adviser. Reports indicate that the agreement funneled around $187 million directly to various entities connected to the Trump family. In addition, the deal allegedly provides two seats on WLFI’s board of directors to executives affiliated with G42, an artificial intelligence and technology firm that has previously faced intense scrutiny from United States intelligence agencies due to its alleged connections to Chinese interests.

Potential Risks to American Data Privacy and Security

Senators Warren and Kim expressed profound worries that the architecture of this investment arrangement could enable a foreign government to exert considerable influence over an American enterprise deeply involved in processing both financial transactions and personal identifiable information. They pointed to WLFI’s own privacy policy disclosures, which reveal that the platform gathers extensive user data, including cryptocurrency wallet addresses, Internet Protocol addresses, unique device identifiers, approximate geographic locations, and various identity verification documents obtained through third-party service providers.

CFIUS bears the critical responsibility of evaluating foreign investments that might grant overseas entities access to strategically important technologies or to personal data of United States residents. In light of these imperatives, the senators have set a deadline of March 5 for Secretary Bessent to provide detailed responses to their inquiries.

Senators request detailed responses from Treasury Secretary. Source: Senate documentation

Prior Concerns Over WLFI’s International Connections

This is not the first instance in which Senator Warren has raised alarms regarding World Liberty Financial’s potential vulnerabilities. Just last year, she joined forces with Senator Jack Reed to press United States authorities to probe purported associations between WLFI’s token distribution activities and entities subject to international sanctions. In a letter sent in November to both the Department of Justice and the Treasury Department, the pair referenced allegations that governance tokens for WLFI had been acquired by blockchain addresses linked to North Korea’s notorious Lazarus Group, as well as other addresses connected to actors from Russia and Iran.

Trump Distances Himself from the UAE Investment Deal

Earlier this month, President Donald Trump publicly stated that he had no knowledge of the reported multimillion-dollar infusion from an Abu Dhabi royal family member into entities associated with World Liberty Financial. During an interaction with journalists, the president emphasized that he played no direct role in negotiating or approving the investment. He clarified that the oversight of such matters falls entirely under the purview of his family members, noting, “My sons are handling that — my family is handling it.” Trump further remarked that investments of this nature come from various sources, reflecting a hands-off approach on his part to the operational details.

The unfolding developments surrounding WLFI underscore the intensifying intersection between high-profile political figures, innovative cryptocurrency platforms, and substantial foreign capital inflows. As regulatory bodies like CFIUS deliberate on these matters, the outcome could set important precedents for how such hybrid ventures are vetted in the future, particularly when they involve nations with complex geopolitical relationships with the United States. Stakeholders in the crypto sector will be closely monitoring the Treasury’s response and any subsequent actions, given the broader implications for investment transparency, data protection, and national security protocols in the rapidly evolving digital asset landscape.