WLFI's $500M Abu Dhabi Deal Sparks U.S. Probe as Token Crashes Below Support
World Liberty Financial (WLFI) is facing growing scrutiny after an Abu Dhabi-linked entity secretly acquired a 49% stake for $500 million. The deal, struck before President Trump's inauguration, has now triggered a U.S. House investigation. Meanwhile, the company's cryptocurrency token, WLFI, has come under heavy selling pressure, dropping below key support levels.
The $500 million investment by the Abu Dhabi-connected group was kept confidential until recently. California Representative Ro Khanna has since launched an inquiry, demanding details from WLFI by 1 March. The probe focuses on potential foreign influence, though President Trump has stated he had no prior knowledge of the transaction.
On the market side, WLFI's token has struggled amid broader bearish trends. Prices fell below a three-month range of $0.106 to $0.176, turning the former demand zone between $0.10 and $0.115 into resistance. The Chaikin Money Flow (CMF) has remained below -0.05 since mid-January, signalling persistent sell pressure.
Adding to the downturn, WLFI deposited 235 million tokens to Binance during the recent decline, reinforcing seller dominance. The company also offloaded $50 million in Bitcoin, a move that aligns with weakening market confidence. This follows broader outflows from Bitcoin spot ETFs, further dampening sentiment.
WLFI now faces a deadline to provide documents to U.S. investigators by early March. The token's price collapse below critical levels suggests traders are losing confidence. With regulatory and market pressures mounting, the company's next steps will be closely watched.
