Investigation Urged into Foreign Investment in Cryptocurrency Firm
A group of Democratic senators is urging a thorough investigation into a significant foreign investment in World Liberty Financial, a cryptocurrency firm associated with former President Donald Trump and his family. In a letter dated February 13, senators Elizabeth Warren and Andy Kim addressed Treasury Secretary Scott Bessent, requesting the Committee on Foreign Investment in the United States (CFIUS) to assess whether a $500 million investment linked to the United Arab Emirates (UAE) poses any national security threats.
Concerns Over Timing and Foreign Ownership
The lawmakers expressed concerns regarding the timing of this investment, particularly since it occurred just before Trump’s inauguration in January. They highlighted the unprecedented nature of foreign ownership in a U.S. financial technology company that has connections to a sitting president, prompting questions about the CFIUS’s awareness and evaluation of the transaction.
Specifically, the investment is reportedly from an entity associated with Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser. This investment vehicle is said to have acquired nearly a 50% stake in World Liberty Financial, which has previously attracted scrutiny from Congress regarding its foreign funding practices. Given the extent of foreign ownership, lawmakers fear it may lead to undue influence and access to sensitive financial information.
Trump’s Response and Broader Implications
Trump has publicly distanced himself from the transaction, claiming that his sons handle the family business. The White House has also dismissed any implications of improper influence. However, the letter from Warren and Kim, which sets a deadline for responses from the Treasury, broadens the narrative from solely ethical considerations to significant national security implications.
This development adds further pressure on the growing scrutiny of World Liberty Financial and its international investments.
As of now, Treasury officials have not released a public statement regarding the allegations or the senators’ letter.
