WLFI Faces Allegations of Trump and Middle East Dark Money Ties, U.S. Senate Calls for Urgent Formal Investigation

▲ Donald Trump, WLFI, UAE/ChatGPT-generated image

The political landscape is being shaken as U.S. senators call for a high-intensity investigation on national security grounds following the inflow of capital from the United Arab Emirates into a virtual asset project led by Donald Trump.

According to cryptocurrency media outlet Cointelegraph on February 14 (local time), Senators Elizabeth Warren and Jack Reed formally requested that the Committee on Foreign Investment in the United States (CFIUS) investigate World Liberty Financial (WLFI). Warren and Reed expressed serious concerns that UAE capital securing a stake in a project closely tied to the Trump family could potentially undermine U.S. national interests and expand foreign influence.

World Liberty Financial was launched as a decentralized autonomous organization-based lending protocol led by Trump and his sons, and it has been at the center of controversy over alleged political-business collusion since its inception. The senators argued that investors linked to foreign governments may have gained a channel to improperly influence the policy-making process of a sitting president through a virtual asset project. They emphasized the need for transparency regarding the background and nature of the Middle Eastern capital inflows, particularly given the high risk of cryptocurrencies being misused for money laundering or sanctions evasion.

CFIUS holds broad authority to review and block foreign investments in U.S. companies that pose national security risks. If the investigation request is accepted and results in an order to divest or withdraw the investment, World Liberty Financial’s operations could face a severe blow. Industry experts note that this case may signal tighter regulations on foreign capital inflows into cryptocurrency projects, adding that growing political uncertainty is increasing market volatility.

Trump’s side has strongly pushed back, calling the probe a politically motivated targeted investigation, while the senators counter that national security concerns must take precedence over partisan interests. As the political clash surrounding the cryptocurrency project intensifies, institutional investors are also raising concerns about risk management related to the asset. Until clear regulatory guidelines are established, allegations of political-business collusion and national security controversies surrounding World Liberty Financial are likely to persist.

Financial industry officials assess that this case starkly illustrates the challenges of ensuring transparency and conducting national security reviews as the cryptocurrency industry moves into the institutional sphere. The upcoming decision by CFIUS is expected to set an important precedent for the intersection of crypto projects and foreign capital, with significant implications for future cryptocurrency regulatory legislation. The U.S. government’s efforts to strike a balance between national security and fostering industry growth are likely to deepen further.

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