TOPINDIATOURS Breaking crypto: Senators Urge CFIUS Probe Into $500M UAE Stake in Trump-Lin

📌 TOPINDIATOURS Update crypto: Senators Urge CFIUS Probe Into $500M UAE Stake in T

Washington just got a new crypto headache. Two U.S. Senators are pushing Treasury Secretary Scott Bessent to open an urgent national security review over a $500 million foreign investment in World Liberty Financial.

Here is where it gets tense. The money comes from a UAE backed investment vehicle and reportedly gives foreign players a 49% stake in the Trump linked crypto venture. That is a big slice.

The timing makes it even more explosive. This all surfaced just days after the inauguration, raising concerns about who might gain access to sensitive financial or user data.

Key Takeaways

  • Senators Elizabeth Warren and Andy Kim formally requested a CFIUS probe into a UAE-backed vehicle purchasing 49% of WLFI.
  • The $500 million deal allegedly funnels $187 million directly to Trump-family linked entities, raising conflict of interest flags.
  • Lawmakers argue the structure grants foreign actors dangerous leverage over a firm collecting sensitive U.S. financial data.

The Deal and the Threat

In a letter sent Friday, Senators Elizabeth Warren and Andy Kim asked Treasury to confirm whether CFIUS was even alerted about the deal.

The transaction would give a UAE backed investment vehicle nearly 49% of World Liberty Financial, the DeFi project widely promoted by the Trump family. That is not a minor stake.

Reports link the funding to Sheikh Tahnoon bin Zayed Al Nahyan, the UAE national security adviser. If finalized, the foreign fund becomes the largest shareholder overnight.

Source: Tahnoon bin Zayed Al Nahyan And Trump / UAE Embassy

And this is happening as Trump affiliated ventures are expanding deeper into crypto, putting everything under a brighter spotlight.

The real tension is about influence. A $500 million stake is not passive money. It can mean access, leverage, and potentially sensitive internal data. For a project tied to a sitting President’s family, the optics alone are enough to spark political fire.

National Security Red Flags

The concern is not just the $500 million. It is the data.

Senators pointed out that WLFI privacy policy admits to collecting wallet addresses, device identifiers, and even approximate location data. If a foreign backed fund gains influence over a company holding that kind of financial information, it raises serious national security flags.

The letter also references executives tied to G42, a tech firm that has faced U.S. scrutiny over alleged links to China.

Warren and Kim want confirmation by March 5 on whether a formal review is underway. With Treasury pushing for clearer crypto rules, ignoring a potential security gap tied to presidential business interests could turn into a political storm.

All of this is unfolding while the broader Trump linked crypto network keeps expanding. Reports suggest roughly $187 million from the deal would flow to entities connected to the Trump family which makes it even more complicated.

Will The Deal Unwind?

If CFIUS steps in, this could get serious. The committee has the authority to unwind deals retroactively, especially if cybersecurity or national security risks are involved. High profile foreign investments with political ties rarely escape scrutiny.

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With crypto increasingly intersecting with federal oversight, headlines like this can move markets quickly. If Treasury confirms an active review, expect volatility to spike.

The post Senators Urge CFIUS Probe Into $500M UAE Stake in Trump-Linked WLFI appeared first on Cryptonews.

🔗 Sumber: cryptonews.com


📌 TOPINDIATOURS Update crypto: Crypto Funds Bleed $173 Million Amid US Outflows, X

Crypto funds recorded a fourth consecutive week of net outflows, shedding $173 million, as investor caution persisted across major digital assets.

However, the pace of withdrawals has slowed markedly from the heavy selling seen in late January and early February, while select altcoins have continued to attract fresh capital.

Crypto Outflows Persist but Slow from January Peaks

According to the latest weekly fund flows report from CoinShares, cumulative outflows over the past four weeks have reached $3.74 billion, reflecting sustained weak sentiment following earlier market volatility.

While outflows continued, last week’s figure was broadly in line with the previous week’s $187 million decline, suggesting the sharp liquidation phase may be easing.

Earlier in the cycle, digital asset funds experienced much steeper withdrawals, including roughly $1.7 billion in each of the final weeks of January.

Market activity also cooled significantly, with ETF trading volumes dropping to $27 billion, down sharply from the record $63 billion reported the week before.

The decline in turnover suggests investors may be stepping back from aggressive repositioning, even as broader uncertainty persists.

Despite the overall negative flows, sentiment improved slightly toward the end of the week. Softer-than-expected US inflation data helped spark $105 million in inflows on Friday.

“Sentiment improved slightly on Friday following weaker-than-expected CPI data,” wrote James Butterfill, head of research at CoinShares.

This suggests macroeconomic signals continue to play a decisive role in shaping short-term crypto demand.

Regional Divergence Becomes More Pronounced as Bitcoin and Ethereum Lead Withdrawals

One of the most notable trends in the latest data was a widening regional divide. The US accounted for $403 million in outflows. This made it the primary driver of the global decline.

While US investors remain cautious, potentially reflecting macro uncertainty and positioning shifts, institutions in other markets may be viewing the recent price weakness as an opportunity to accumulate.

Last Week’s Crypto Outflows by Country. Source: CoinShares

Meanwhile, the largest digital assets continued to bear the brunt of negative sentiment. Bitcoin investment products saw $133 million in outflows, the weakest performance among major assets.

Interestingly, short Bitcoin products also recorded outflows totaling $15.4 million over the past two weeks.

Crypto Outflows by Asset. Source: CoinShares Report

Historically, declines in demand for bearish positions have sometimes coincided with periods of market capitulation. Therefore, it may signal that the worst of the selling pressure could be nearing exhaustion.

Ethereum funds also struggled, posting $85.1 million in outflows as investors reduced exposure to the second-largest crypto. Smaller products were not immune either, with Hyperliquid seeing modest withdrawals of around $1 million.

Altcoins Show Signs of Rotation

In contrast to the broader trend, several altcoins continued to attract capital. XRP led inflows at $33.4 million, followed closely by Solana at $31 million, while Chainlink added $1.1 million.

These inflows point to a selective rotation rather than a wholesale exit from the crypto sector. Investors appear to be reallocating toward assets perceived to have stronger narratives or relative momentum, even as exposure to larger-cap tokens declines.

Taken together, the latest data paints a picture of a market still under pressure but stabilizing compared with the intense selling seen earlier in the year.

Crypto outflows remain persistent, yet their reduced scale, coupled with regional inflows and continued interest in certain altcoins, suggests investors are adjusting portfolios rather than abandoning the asset class outright.

The post Crypto Funds Bleed $173 Million Amid US Outflows, XRP and Solana Buck the Trend appeared first on BeInCrypto.

🔗 Sumber: www.beincrypto.com


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