Senators Sound Alarm Over Trump-Linked Crypto Project

Key Takeaways:

• Senators want federal authorities to investigate WLFI for possible links to sanctioned foreign actors.
• The Trump family’s large WLFI token stake has raised conflict-of-interest concerns.
• Lawmakers fear weak compliance could pose national security risks as WLFI expands. 

Rather than focusing on price or market activity, senators Elizabeth Warren and Jack Reed are sounding alarms over who may be buying into World Liberty Financial (WLFI) — not what the token is worth.

Lawmakers Fear Token Sales May Have Reached Sanctioned Buyers

The senators say recent findings from corporate watchdog groups show that WLFI tokens may have been acquired by traders tied to some of the most notorious cybercriminal networks in the world. One claim points to alleged purchases by wallets linked to North Korea’s Lazarus Group — the same hacking organization accused of raiding international crypto exchanges and funding weapons programs.

Their argument is simple: if sanctioned actors are getting access to WLFI tokens, then U.S. national security could be at risk.

The problem, however, is not limited to suspicious blockchain activity. Warren and Reed argue that WLFI does not appear to maintain the anti-money-laundering safeguards expected of a project handling global token sales. They warn that without strong protection, foreign actors could either move money through the ecosystem or potentially gain influence over governance decisions tied to the platform.

Trump Family Holdings Intensify the Debate

What elevates the situation from a technical compliance issue to a political bombshell is the ownership structure. A corporate entity linked to the Trump family reportedly controls a major share of WLFI tokens — and stands to receive roughly three-quarters of the revenue from their sale.

Critics say that setup creates built-in conflicts of interest inside the current administration, where regulators answer to the same president whose relatives profit from those very token sales.

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Expansion Plans Trigger Urgency

The senators’ request doesn’t come at a random moment. WLFI has been promoting plans for a consumer-facing app and debit card — tools that would dramatically widen participation. Opponents worry that scaling a system without airtight compliance could funnel money into the wrong hands at a much larger volume.

The clash arrives while Congress debates new crypto legislation that could exempt governance tokens like WLFI from certain oversight obligations. Warren and Reed argue that the United States cannot allow regulatory loopholes to be weaponized by adversarial nations while politically connected token issuers enrich themselves.

DOJ and Treasury Put on the Clock

To avoid ambiguity, the senators have asked the Justice Department and the Treasury to state — by December 1 — whether potential enforcement actions or monitoring steps are underway.

The political fight around crypto continues to escalate, but this time the question is not whether digital tokens should exist — it’s who might be using them behind the scenes.

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