Democrats Target Trump Linked Crypto Firm But ZachXBT Fires Back at ‘Weak Claims’

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A new political fight has started in Washington as Senators Elizabeth Warren and Jack Reed have asked the U.S. Department of Justice and the Treasury Department to investigate World Liberty Financial, a crypto firm linked to Donald Trump.

The senators say the company may not have strong protections against suspicious money and could be connected to bad actors in North Korea and Russia. Their concerns come from a report claiming the firm sold about 600,000 WLFI tokens worth around 10,000 dollars to wallets linked to North Korea, Iran and Tornado Cash, a service previously connected to money laundering.

Crypto Community Pushes Back

On chain analyst ZachXBT quickly responded, calling the accusations extremely weak. He explained that World Liberty Financial raised $550 million and the amount said to be illicit is just $10,000 which is only 0.0018 percent of the total.

He warned that if regulators can target a company over such a tiny amount, the next target could be other crypto platforms including Hyperliquid.

But Zach’s post sparked unexpected reactions online. Some users began mocking him, saying things like “Zach promoting WLFI these days are weird,” suggesting he was defending the firm even though he was not. Others tied his comparison to Senator Warren’s past controversy about her ancestry percentage, which only fueled the memes.

ZachXBT later clarified that people misunderstood him. He said he was not supporting WLFI and was only pointing out how regulators were using extremely small numbers to justify major action against the crypto industry.