The House Oversight Committee announced today the initiation of a formal investigation into a highly controversial $500 million investment deal involving a major UAE sovereign wealth fund and World Liberty Financial (WLF). The bipartisan probe centers on allegations that the transaction was intentionally structured to bypass mandatory national security review by the Committee on Foreign Investment in the United States (CFIUS).
Committee Chairman Rep. James Harrison (D-NY) stated that the primary concern is the potential foreign influence over critical financial infrastructure. “A half-billion dollars flowing from a state-affiliated entity into a key American financial services firm demands full transparency,” Harrison said in a press release. “We must ensure that national security interests are not compromised by complex debt instruments designed purely to evade regulatory scrutiny.”
World Liberty Financial, a prominent player in financial data analytics and high-frequency trading, received the capital injection in late 2023. The deal was reportedly structured using convertible notes and complex debt instruments rather than direct equity, a common technique utilized to remain outside the traditional scope of CFIUS jurisdiction.
Subpoenas have been issued to key executives at WLF, demanding all internal correspondence, due diligence reports, and communications with the UAE investment group and the Treasury Department regarding the deal’s framework. The committee is seeking documentation related to the intended access the foreign entity was granted to proprietary technology and sensitive client data.
The investigation timeline is aggressive, with the committee demanding full compliance within two weeks. Lawmakers warn that depending on the findings, the probe could lead to significant legislative action aimed at broadening CFIUS’s authority to cover non-controlling foreign investments in strategic U.S. sectors.
Source: House launches probe into $500 Million UAE deal linked to World Liberty Financial
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