Rep. Ro Khanna (D-Calif.) formally demanded records from World Liberty Financial (WLFI) on Tuesday, launching an investigation into a $500 million investment from a United Arab Emirates-linked entity that allegedly funneled $187 million directly to the Trump family. The probe questions whether the massive capital injection, finalized just 96 hours before Donald Trump’s 2025 inauguration, influenced U.S. national security policy regarding advanced AI chip exports.
The Market Reaction: WLFI struggled to hold $0.13 (-5.09%) following the news, capping a 19% decline over the last week. Volume spiked to $110 million on Kraken and Binance as holders de-risked.
The “Aryam” Connection
The investigation centers on Aryam Investment 1, an entity backed by Sheikh Tahnoon bin Zayed Al-Nahyan, the UAE’s National Security Advisor. According to the congressional letter sent to WLFI co-founder Zach Witkoff, Aryam acquired a 49% stake in the project in January 2025. Of the $250 million upfront payment, documents suggest $187 million flowed to Trump-controlled entities, while another $31 million went to the Witkoff family.
Khanna, the Ranking Member of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, explicitly linked this payout to subsequent administration decisions. Specifically, the probe highlights the May 2025 approval of 500,000 Nvidia AI chips for export to the UAE, a transfer previously restricted due to fears of technology leakage to China.
The reported deal may have contributed to changes to U.S. policy intended to prevent the diversion of advanced artificial intelligence chips to China… potentially undermining the U.S. ability to outcompete the CCP.
The Binance & CZ Pardon Thread
The inquiry extends beyond the initial equity deal. Khanna’s office is scrutinizing a separate transaction involving MGX, another UAE fund controlled by Sheikh Tahnoon. MGX reportedly used WLFI’s stablecoin, USD1, to facilitate a $2 billion investment into Binance. This transaction coincided with the presidential pardon of Binance founder Changpeng Zhao (CZ), raising questions about a quid pro quo arrangement involving U.S. regulatory relief.
The committee has given World Liberty Financial until March 1, 2026, to produce capitalization tables, profit distribution records, and all internal communications regarding the Aryam and MGX deals.
