The U.S. House of Representatives has opened a formal investigation into national security risks tied to a $500 million UAE investment in President Trump's crypto project, World Liberty Financial (WLF). The probe, launched June 14, zeroes in on a 49% stake acquired by a firm linked to Abu Dhabi's Sheikh Tahnoon bin Zayed Al Nahyan. It lands just days after WLF handed out $250,000 in its USD1 stablecoin as bonuses to UFC fighters on the White House South Lawn.
The $500 million stake and who's behind it
A UAE entity tied to Sheikh Tahnoon — the national security adviser and a key figure in Abu Dhabi's investment apparatus — paid $500 million for a 49% share of WLF. The deal, first reported in May, immediately drew scrutiny from lawmakers concerned about foreign influence over a business co-founded by a sitting U.S. president. The House probe is now examining whether that stake creates a conflict of interest or exposes the country to financial leverage from a foreign state.
The White House UFC payouts
On June 14, WLF made good on its sponsorship of UFC Freedom 250, paying $250,000 worth of USD1 stablecoins to fighters as performance bonuses. The event, held at the White House, doled out a record $1.65 million total in bonuses. Performance of the Night winners each received $425,000 in USD1. It wasn't just a publicity stunt; the payments demonstrated a real use case for the stablecoin — settling large, fast payouts to individuals without relying on traditional bank rails.
USD1's quiet expansion
USD1, launched by WLF in 2024, has quietly built scale. Its market cap topped $5 billion by March, and the stablecoin now runs across four networks — Ethereum, BNB Chain, Tron, and Solana. Reserves are held in U.S. Treasuries and cash equivalents, a structure designed to reassure regulators. More telling: a separate Tahnoon-linked entity recently used USD1 to settle a $2 billion investment in Binance, signaling that the stablecoin is moving beyond WLF's own ecosystem into broader wholesale finance.
What the probe means next
The House investigation adds a layer of political risk to a stablecoin that was already drawing attention. Lawmakers haven't set a public deadline for findings, but the formal inquiry means subpoenas and document requests are likely coming. WLF hasn't commented on the probe, and the White House didn't respond to requests for comment. For now, the question hanging over USD1 is whether its fastest-growing user — a UAE-linked entity with ties to a foreign government — is also its biggest liability.
