- Two democratic senators have asked the Treasury to determine whether a UAE-backed investment in a Trump-linked crypto firm requires national security scrutiny.
- The reported 49% stake was acquired shortly before Trump’s second inauguration and involved substantial payments to entities linked to his family and Steve Witkoff.
- Lawmakers raised concerns about potential foreign access to user data and cited intelligence warnings regarding G42’s alleged China ties.
Democratic Senators Elizabeth Warren and Andy Kim have urged Treasury Secretary Scott Bessent to assess whether a US$500 million (AU$705 million) investment by a United Arab Emirates-linked entity in World Liberty Financial should face a national security review.
In a letter sent on Friday, the two members of the Senate Banking Committee asked Bessent to determine whether the Committee on Foreign Investment in the United States (CFIUS) ought to scrutinise the reported 49% stake acquired in the Trump-linked cryptocurrency venture. CFIUS, which is chaired by the Treasury, examines foreign investments for potential national security threats.
The senators requested answers by 5 March, including whether CFIUS has already evaluated the transaction or provided any recommendation to President Donald Trump. They wrote that “The transaction raises significant national security concerns,” and said CFIUS has a “clear mandate to address potential national security risks from foreign investments”.
Related: Trump-Backed WLFI Expands Into $9.6T FX Market With ‘World Swap’ Launch
Key Details of the Acquisition
According to reports last month, G42, a company backed by Sheikh Tahnoon bin Zayed Al Nahyan, purchased the stake days before Trump’s second inauguration in January 2025.
The deal was executed through Aryam Investment 1 and signed by Eric Trump, with an upfront US$250 million (AU$352.5 million) payment, of which about US$187 million (AU$263.67 million) went to Trump family entities and at least US$31 million (AU$43.71 million) to firms linked to Steve Witkoff’s family.
Warren and Kim questioned whether the arrangement could enable the UAE or China to access sensitive personal data collected by the company. They also cited longstanding US intelligence warnings that G42 may have provided technology to assist China’s military.
Related: Winter Storm Freezes Crypto Rulemaking in Washington
Credit: Source link
