Senators Warren and Reed Urge Federal Review of WLFI Token Sales Linked to High-Risk Wallets

Highlights:

• Warren and Reed are pushing for a review of WLFI as new data links some token buyers to high-risk international actors.
• The WLFI token sales have drawn concern as reports show links to wallets tied to North Korean actors.
• The Senators are seeking fast updates from agencies as they warn that weak oversight may support illicit finance risks.

Senators Elizabeth Warren and Jack Reed called for a formal review of World Liberty Financial. They sent a letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent on November 12. The senators referenced a CNBC report that detailed concerns tied to the platform’s buyers. They pointed to claims from Accountable.US that linked some buyers to North Korea and Russia. They argued that the firm handled funds connected to actors who interacted with high-risk networks.

The watchdog report cited data from September. It claimed that several WLFI token buyers interacted with an Iranian exchange. It also noted links to wallets tied to laundering tools that raised compliance concerns. The senators said the findings raised questions about the platform’s internal controls. They stressed that the issue demanded urgent review due to potential national security risks.

World Liberty Financial did not admit to any misconduct in the CNBC report. The company indicated that its business was conducted in accordance with standard procedures. It also denied the fact that it favoured the buyers who had hostile relations. The senators, nevertheless, indicated that the allegations needed further investigation. They observed that the report brought to light a trend that the government should address.

National Security Questions Grow Over WLFI Token Sales

The WLFI Token Sales began to raise concerns following the revelations by Accountable.US. The watchdog reported that addresses associated with the Lazarus Group were interacting with some wallets associated with WLFI. It also found a wallet that had contact with an Iranian exchange many times. These arguments introduced a new twist to the senatorial demand to investigate. The allegations indicated failures in due diligence investigations at WLFI.

The report also said that some wallets had exposure to sanctioned Russian tools. It noted several transactions with Tornado Cash addresses. The senators said the activity raised questions about screening checks for governance token buyers. They argued that such gaps could allow high-risk actors to influence platform decisions. They warned that the situation required immediate assessment from federal agencies.

Warren has held a long-standing critical stance on digital assets. She said the industry exposes consumers to major risks. She also said the structure of some platforms enables unchecked movement of funds. Her position often shapes debates within the Senate Banking Committee. Reed supported her concerns in the latest request.

WLFI reportedly blocked about 272 wallets in September. The senators said the action confirmed that WLFI faced exposure to high-risk actors. The senators argued that the scale of the blacklist strengthened the push for a full review. They said the data highlighted weak screening systems. They also said the findings supported broader calls for improved oversight.

The senators also pointed to Trump’s link to the platform. The senators said the connection raised conflict-of-interest concerns during ongoing crypto policy debates. They noted that Trump promoted a pro-crypto stance during his campaign. They argued that this connection added further weight to the probe request. The senators insisted that oversight remained important as new crypto rules moved through the Senate.

Senators Seek DOJ and Treasury Outline on Possible Actions

Warren and Reed requested that the agencies describe any intended action by December 1. The duo reported that the citizens needed to know how the regulators were going to act upon the concerns. They cautioned that lax regulation can facilitate illicit finance. They emphasized that clear answers are still relevant as crypto regulations evolve.

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