Connect with us

Crypto World

House probe targets World Liberty Financial after report of $500 Million UAE stake

Published

on

House probe targets World Liberty Financial after report of $500 Million UAE stake

A U.S. House investigation is probing whether World Liberty Financial, a Trump-associated crypto venture, and its dollar-pegged token became entangled with foreign sovereign capital and U.S. technology policy.

The move follows a Wall Street Journal report that an Abu Dhabi-linked entity secretly agreed to buy a 49% stake in World Liberty Financial for $500 Million shortly before President Donald Trump’s inauguration in early 2025.

Rep. Ro Khanna (D-Penn), ranking member of the House Select Committee on the Chinese Communist Party – a temporary U.S. House panel that investigates and studies how China affects U.S. interests – has sent a formal letter demanding ownership records, payment details and internal communications from the company, framing the inquiry around potential conflicts of interest, national-security risks tied to AI chip export controls and the role of World Liberty’s USD1 stablecoin in a separate $2 Billion Binance investment.

Khanna’s letter asks World Liberty to confirm details of the reported Emirati investment, including whether $187 million flowed to Trump family entities and whether additional payments were made to affiliates of the company’s co-founders.

Advertisement

The House investigation also requested capitalization tables, profit distributions, board appointment records, and due diligence materials tied to Aryam Investment 1, the vehicle identified in press reports.

A significant portion of the inquiry focuses on USD1, World Liberty’s dollar-pegged stablecoin, which was used to settle MGX’s $2 billion investment in the crypto exchange Binance.

Khanna and lawmakers are seeking documentation on how USD1 was selected, the revenue generated by the transaction, and whether company personnel were involved in discussions regarding the later presidential pardon of Binance founder Changpeng Zhao.

The House committee also instructs the company to preserve electronic communications and internal compliance policies related to conflicts of interest, export controls, and dealings with entities tied to the United Arab Emirates or China.

Advertisement

World Liberty has until March 1 to deliver the requested records.

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Crypto World

Bitcoin ETFs ‘Hanging In There’ Despite Price Plunge: Analyst

Published

on

Bitcoin ETFs 'Hanging In There' Despite Price Plunge: Analyst

US-based spot Bitcoin exchange-traded fund (ETF) holders are showing relatively firm conviction despite a four-month Bitcoin downtrend, according to ETF analyst James Seyffart.

“The ETFs are still hanging in there pretty good,” Seyffart said in an X post on Wednesday.

While Seyffart said that Bitcoin (BTC) ETF holders are facing their “biggest losses” since the US products launched in January 2024 — at a paper loss of around 42% with Bitcoin below $73,000 — he argues the recent outflows pale in comparison to the inflows during the market’s peak. 

Bitcoin ETF holders are “underwater and collectively holding.”

Before the October downturn, spot Bitcoin ETF net inflows were around $62.11 billion. They’ve now fallen to about $55 billion, according to preliminary data from Farside Investors.

Advertisement

“Not too shabby,” Seyffart said. 

Source: James Seyffart

Meanwhile, investment researcher Jim Bianco said in an X post on Wednesday that the average spot Bitcoin ETF holder is 24% “underwater and collectively holding.”

Bitcoiners are being “very short-sighted.”

Crypto analytics account Rand pointed out in an X post on Tuesday that this is “the first time in history there have been three consecutive months of outflows.”