Quick Takeaways:
- Senators demand an investigation into WLFI over possible links to sanctioned foreign buyers.
- The Trump family’s major WLFI stake raises conflict-of-interest concerns.
- Lawmakers warn that weak compliance could pose national security risks as WLFI expands.
Lawmakers Warn of National Security Threats
A new political flashpoint is emerging in Washington. Senators Elizabeth Warren and Jack Reed are urging federal agencies to investigate World Liberty Financial (WLFI), a crypto project connected to President Trump.
The senators say the issue is not the token’s value. Instead, they worry about who may be buying WLFI.
Concerns Over Possible Sanctioned Buyers
The lawmakers cite reports from corporate watchdogs that claim WLFI tokens may have reached wallets tied to foreign cybercrime groups.
One allegation points to possible purchases by addresses linked to North Korea’s Lazarus Group.
The senators argue that any access by sanctioned actors could create a national security threat.
Weak Compliance Controls Under Scrutiny
The concerns go beyond suspicious wallet activity. Warren and Reed say WLFI lacks strong anti-money-laundering safeguards for global token sales.
They warn that poor oversight could let foreign actors move funds through the WLFI ecosystem. It could also give them influence over platform governance.
Trump Family Holdings Raise Political Stakes
The debate deepens due to WLFI’s ownership structure. A Trump-linked corporate entity reportedly holds a major share of WLFI tokens and receives most of the project’s revenue.
Critics say this creates a conflict of interest. Regulators operate under an administration whose first family may profit from these token sales.
Planned Expansion Intensifies the Pressure
WLFI is preparing to launch a consumer app and debit card. These features could expand activity across the project.
The senators argue that scaling without strict compliance could magnify risks. Weak controls could allow hostile foreign actors to move larger sums undetected.
Regulators Asked for Answers by December 1
To avoid uncertainty, Warren and Reed have asked the Treasury and Justice Department to confirm whether enforcement or monitoring actions are underway.
The political battle around crypto is growing. This time, the debate focuses not on digital assets themselves, but on who might be using them and why.