Senators seek national security review of UAE stake in WLFI

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Senators seek WLFI security review

Highlights

Senators Warren and Kim requested a CFIUS review of a reported $500M UAE-backed stake in WLFI.
The deal allegedly gave a foreign-linked entity 49% ownership and board representation.
Concerns center on potential access to sensitive financial and personal user data.

Sens. Elizabeth Warren of Massachusetts and Andy Kim of New Jersey have formally asked Treasury Secretary Scott Bessent, who chairs the Committee on Foreign Investment in the United States (CFIUS), to assess whether the reported $500 million deal requires a federal security review, Cointelegraph reports.

Lawmakers question foreign influence in WLFI

At the center of the controversy is a reported transaction in which a UAE-backed investment vehicle acquired a 49% stake in World Liberty Financial (WLFI), a crypto venture affiliated with the Trump family. The deal allegedly closed just days before President Donald Trump’s January 2025 inauguration.

According to reports cited in the senators’ letter, the investment was backed by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and a key figure behind the technology company G42. The agreement reportedly directed approximately $187 million to Trump-linked entities and granted board representation to executives connected to G42.

CFIUS is responsible for reviewing foreign investments that could present national security concerns, particularly when sensitive technologies or personal data may be involved. WLFI’s privacy disclosures indicate that the firm collects user information including wallet addresses, IP addresses, device identifiers and location data. Lawmakers warned that such access could create vulnerabilities if foreign entities gain influence over the company.

They have asked Bessent to confirm whether the transaction was reviewed, whether it qualified for expedited processing, and whether the committee made any recommendations to the president. The senators requested a response by March 5.

Broader concerns over data and geopolitics

The scrutiny extends beyond the ownership structure. G42 has previously drawn bipartisan attention over past relationships with Chinese firms, though it has said it divested from Chinese partnerships in early 2024.

WLFI, which launched its USD1 stablecoin in March 2025 and has since reached more than $5 billion in circulating supply, is also seeking a national trust bank charter. That move could potentially expand the volume of financial data under its control.

President Trump has publicly distanced himself from the reported investment, stating, “My sons are handling that — my family is handling it,” adding, “I guess they get investments from different people.”

Why it matters

The WLFI transaction underscores growing tensions between cryptocurrency ventures and national security oversight. If CFIUS determines the deal warrants investigation, it could set a precedent for how foreign capital flows into politically connected digital asset firms. At stake are questions of data security, foreign influence, and the evolving role of crypto businesses within U.S. financial infrastructure.

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