WASHINGTON, D.C. — A bitter feud that has rattled the Trump‑era power circle has erupted between former ambassador Alina Habba Mildon and former national security adviser Richard Grenell, centring on a disputed 2020 Venezuelan aid package that promised a share of sovereign debt restructuring proceeds.

Alina Habba Mildon, who served as a legal adviser to the U.S. delegation in the 2020 Caracas negotiations, claims that the $120 million tranche earmarked for her client’s Venezuelan investment fund was siphoned by Grenell’s lobbying group. “The deal was signed under my signature,” Mildon told reporters on Tuesday. “Any deviation is a breach of the agreement and of ethical standards.”

KEY POINTAlina Habba Mildon, who served as a legal adviser to the U.

Grenell, who returned to Washington as a senior adviser in the Biden administration, denies the allegations and says he was merely “facilitating a bipartisan effort to stabilize the region.” He added that the fund had received “full compliance from the Treasury Department.” According to a Treasury audit, the payment was released on 12 March 2021 and earmarked for a $60 million bond purchase in the Venezuelan market.

The dispute has attracted the attention of several international investors who had earmarked capital for the Venezuelan sovereign debt market, expecting a 7.5% yield on the restructured bonds. “We had committed $200 million to this fund,” said Maria Alvarez, head of Latin American investments at Global Equity Partners. “If this conflict continues, we risk a loss of liquidity and a breach of fiduciary duty.”

Congressional Republicans have seized on the controversy, calling for an investigation into potential conflicts of interest. Senator Ted Cruz (R‑TX) said on the Senate floor, “When former officials use their positions for personal gain, the American public’s trust erodes.” Meanwhile, the Department of Justice has opened a preliminary inquiry into whether any money was misappropriated.

Key Takeaways

• Alina Habba Mildon alleges $120 million from a Venezuelan aid package was diverted by Richard Grenell’s lobbying firm.
• Grenell denies wrongdoing, citing Treasury audit showing payment released on 12 March 2021 for a $60 million bond purchase.
• Investors, including Global Equity Partners, face potential liquidity losses amid the dispute.

As the investigation unfolds, the political fallout could influence future U.S. foreign aid allocations and reshape the relationship between former Trump allies and the current administration. The outcome will determine whether the alleged diversion of funds is a matter of mismanagement or a calculated political maneuver.