Short Description: U.S. Senators demand a CFIUS investigation into a $500M UAE investment in a Trump-linked crypto platform, citing major national security and financial data privacy risks.
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Senators Push for Probe Into UAE Investment in Trump-Linked Crypto Firm
U.S. Senators Elizabeth Warren (D-Mass.) and Andy Kim (D-N.J.) have formally urged the Treasury Department to launch a CFIUS investigation into a massive foreign investment in World Liberty Financial (WLFI), a cryptocurrency venture with ties to the Trump family. The lawmakers’ letter highlights grave concerns that a $500 million stake purchased by a UAE-backed fund just days before Donald Trump’s 2017 inauguration could threaten national security and expose Americans’ sensitive financial information. They emphasized that CFIUS, which reviews deals for potential risks, must determine if the investment grants a foreign government undue influence or access to critical data.
The investment, reportedly backed by UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, would make the foreign entity the largest shareholder in WLFI. The senators noted the deal allegedly directed $187 million to Trump-linked entities and granted board seats to executives from G42, a tech firm previously scrutinized for its ties to China. This Trump-linked crypto venture collects extensive user data, including wallet addresses and identity records, raising alarms about financial data privacy. “The structure of the deal could allow a foreign government to gain influence over a U.S. company handling financial and personal information,” the lawmakers warned.
This action expands ongoing scrutiny of WLFI, following earlier bipartisan letters alleging its tokens were purchased by sanctioned entities like North Korea’s Lazarus Group. When questioned, former President Trump denied direct involvement, stating his sons handle the investment. The Treasury Department has been asked to confirm if CFIUS was notified of the transaction and to conduct a full review by March 5, placing the UAE investment under a harsh political and regulatory spotlight.
Short Summary: Senators Warren and Kim are pressing for a national security review of a major UAE investment in a Trump-associated crypto platform, WLFI. They warn the deal could allow foreign access to Americans’ sensitive financial data and demand CFIUS investigation. This highlights growing regulatory focus on the intersections of cryptocurrency, foreign capital, and data privacy.
