Trump's crypto project under fire: Democrats demand hearings over $500 million from UAE
Five Democratic senators have initiated an urgent request for Senate hearings regarding the crypto company World Liberty Financial (WLF), backed by President Trump's family. The reason was information that, shortly before the inauguration, a stake in the project worth $500 million was purchased by individuals connected to a member of the United Arab Emirates royal family.
The appeal, sent on June 23 to the chairs of five key Senate committees, was signed by Elizabeth Warren, Richard Blumenthal, Gary Peters, Dick Durbin, and Ron Wyden. The senators insist that representatives of the Trump administration answer under oath what they knew about these financial inflows and related decisions.
Deal on the Eve of the Inauguration
At the heart of the request is an investigation according to which the company Aryam Investment from Abu Dhabi purchased 49% of WLF shares for approximately $500 million. The deal was concluded just four days before the president's inauguration in January 2025. Aryam Investment is controlled by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's national security advisor and manager of the country's largest sovereign wealth fund.
According to available data, about $187 million of this amount went to entities linked to the Trump family, and approximately $31 million to entities linked to the Witkoff family. The senators emphasize a direct connection between these investments and subsequent administration actions: a few months later, approval was granted for a $1.4 billion arms sale to the UAE, and in November 2025, the delivery of 35,000 advanced American AI chips to UAE company G42 was approved, despite warnings about threats to national security.
"The entire chain of events raises serious concerns for us: it is possible that the UAE authorities have already received or will receive even more — to the detriment of US national security — after investing in the Trump family's crypto company," the letter states.
White House Reaction and Senators' Position
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. As early as February, Warren and Andy Kim sent a letter to Treasury Secretary Scott Bessent regarding the same deal. Warren has repeatedly criticized Trump's crypto projects linked to the UAE, arguing that his administration's AI and crypto partnerships with Gulf states create direct threats to national security.
My analysis: This precedent is a clear signal to the market. The intersection of major state interests, cryptocurrencies, and political families creates a zone of turbulence for the entire sector. Investors should closely monitor the development of the hearings: any tightening of regulation or disclosure of new details could trigger short-term volatility, especially in projects with a high degree of political capital.