Senior Senate Democrats are demanding congressional hearings into a $500 million investment made into a cryptocurrency venture co-founded by the Trump family, prompting renewed scrutiny over potential conflicts of interest involving the former president and his associates. The deal, signed just days before President Joe Biden’s inauguration, involved the sale of a 49 percent stake in World Liberty Financial to a group led by Sheik Tahnoon bin Zayed al Nahyan, an Emirati royal and the United Arab Emirates’ intelligence chief.

The agreement, signed by Eric Trump four days prior to the January 20 inauguration, reportedly funneled at least $187 million to Trump family entities and approximately $31 million to entities connected to Steve Witkoff, the U.S. special envoy to the Middle East and a co-founder of the venture. Four months after the transaction closed, the Trump administration approved a deal granting the UAE access to advanced AI chips that had been restricted by the Biden administration due to concerns over the Gulf nation’s ties with China.

In a letter addressed to Republican chairmen of Senate committees, Democrats including Senators Richard Blumenthal, Elizabeth Warren, Gary Peters, Dick Durbin and Ron Wyden called for hearings to compel White House officials to testify under oath about what they knew regarding payments to the president’s family and Mr. Witkoff. The senators expressed concerns that the UAE may have received or could receive additional concessions that could compromise U.S. national security.

White House counsel David Warringston defended the arrangement, stating that former President Trump had no involvement in the business dealings and emphasizing that Mr. Witkoff has recused himself from official matters that might affect his financial interests. White House spokeswoman Anna Kelly stressed that Mr. Trump’s businesses were held in a trust controlled by his children and said the AI chip approval was based solely on U.S. interests, unrelated to World Liberty Financial.

Republican responses questioned the timing and motivations of the inquiry. A spokeswoman for Senator Chuck Grassley, Republican chairman of the Senate Judiciary Committee, criticized the Democrats’ request as selective, drawing attention to corruption allegations involving the Biden administration.

Additional scrutiny has emerged from a Senate Banking Committee report identifying a series of policy decisions favorable to UAE investors following the cryptocurrency deal. Notably, the approval of a 15 percent sale of TikTok’s U.S. operations to MGX, a company led by Sheik Tahnoon, occurred in January. The report also highlighted the October pardon of Changpeng Zhao, founder of Binance, a crypto firm partially owned by MGX. The senators suggested these developments might indicate a broader pay-to-play scheme benefiting the Trump family and their associates.

Sheik Tahnoon and representatives of MGX did not immediately respond to requests for comment.

This investigation adds to mounting Democratic efforts to examine the cryptocurrency investment. Earlier this year, California Representative Ro Khanna launched a probe into the deal, and members of the Senate Foreign Relations Committee have criticized the transaction as emblematic of corruption and self-dealing within the former president's circle. Any formal hearings would require cooperation from Republicans, who currently control key Senate committees.