Scandal around World Liberty Financial: Democrats demand hearings on $500 million UAE deal
Five Democratic senators have initiated an urgent request for hearings regarding the World Liberty Financial (WLF) crypto project, backed by the Trump family. The reason was information that shortly before the president's inauguration, a $500 million stake in the project was purchased by individuals connected to a member of the United Arab Emirates (UAE) royal family.
On June 23, the senators sent an appeal to the heads of five key Senate committees from the Republican Party. They insist that representatives of the Trump administration testify under oath about their awareness of these financial inflows. The situation raises serious questions about a potential conflict of interest and the influence of foreign capital on political processes in the United States.
Deal Details and Key Figures
At the center of attention is a deal concluded four days before the president's inauguration in January 2025. The company Aryam Investment from Abu Dhabi, controlled by Sheikh Tahnoon bin Zayed Al Nahyan — the UAE's national security advisor and manager of the country's largest sovereign wealth fund — acquired a 49% stake in WLF. According to available data, approximately $187 million went to entities linked to the Trump family, and about $31 million to entities linked to the Witkoff family.
The senators draw a direct parallel between this investment and subsequent administration decisions. In particular, they point to the approval of a $1.4 billion arms sale to the UAE, as well as permission to supply 35,000 advanced American AI chips to the UAE company G42. The permission was granted in November 2025, despite warnings about a threat to national security.
"The entire chain of events raises serious concerns and questions for us: it is possible that the UAE authorities have already received or will receive even more — to the detriment of U.S. national security — after investing in the Trump family's crypto company," the senators' letter states.
White House Position and Background of the Conflict
World Liberty Financial has previously rejected such claims, stating that Donald Trump and Steve Witkoff were not involved in the deal and have no connection to the company's activities since the president took office. The White House explained that the president's assets have been placed in a trust managed by his children, which, in their view, eliminates a conflict of interest.
This is not the first time senators have raised this issue. In February, Warren and Andy Kim already sent a letter to Treasury Secretary Scott Bessent regarding the same deal. Senator Elizabeth Warren has consistently criticized Trump's crypto projects linked to the UAE, arguing that his administration's AI and crypto partnerships with Gulf states could create national security threats.
Cryptalist Analysis: This incident is a classic example of how the intersection of politics, big finance, and cryptocurrencies creates a zone of turbulence. For the market, this is a signal that regulatory pressure on projects linked to high-ranking individuals will only intensify. Investors should closely monitor developments, as the outcome of these hearings could set a new direction for the regulation of the crypto industry in the United States.