World Liberty Financial under fire as U.S. probe exposes $500M foreign deal
World Liberty Financial (WLFI) is facing growing scrutiny after a U.S. House investigation was launched into its ties with foreign sovereign capital. The probe follows reports that an Abu Dhabi-linked entity secretly acquired a 49% stake in the company for $500 million just before President Trump's inauguration. Meanwhile, the firm's cryptocurrency token has come under heavy selling pressure, with prices dropping below a key three-month range.
President Trump has denied any knowledge of the deal, adding to the uncertainty surrounding the situation.
The investigation, led by California Representative Ro Khanna, centres on the $500 million investment and its potential implications. A formal letter has been sent to WLFI, demanding documents by 1 March. The company's financial transparency has been called into question, as public records on its market performance remain scarce.
Market activity has also raised concerns. WLFI recently deposited 235 million of its tokens to Binance during a sharp downtrend, signalling strong seller dominance. Additionally, the company sold $50 million worth of Bitcoin, a move that analysts interpret as a sign of weakening market confidence.
Technical indicators suggest further trouble ahead. The former support zone between $0.10 and $0.115 has now turned into a resistance level, increasing the likelihood of a bearish reaction if prices bounce. Traders are watching for a potential retest of this zone before another drop, possibly towards $0.086.
WLFI must submit the requested documents by the 1 March deadline. The outcome of the investigation could impact both its regulatory standing and market stability. With bearish pressure mounting and key price levels failing, the company's financial outlook remains uncertain.
