World Liberty Financial is facing mounting political and regulatory pressure as new allegations suggest the Trump-linked crypto platform may have sold tokens to buyers connected to North Korea, Russia, and Iran.
The scrutiny has intensified amid concerns that these transactions could pose national-security risks and raise questions about the company’s oversight practices.
Democratic Senators Elizabeth Warren and Jack Reed sound the Alarm
Concerns surrounding WLFI grew after Democratic Senators Elizabeth Warren and Jack Reed sent formal letters to the Department of Justice and the US Treasury.
The senators are urging officials to investigate claims that World Liberty Financial sold WLFI governance tokens to individuals and entities with ties to sanctioned foreign networks.
Their request followed a report from nonprofit watchdog Accountable.US, which linked certain WLFI token purchases to blockchain wallets associated with hostile state-backed groups.
The watchdog asserted that buyers included traders connected to North Korea’s Lazarus Group, a sanctioned Russian ruble-backed evasion tool, an Iranian crypto exchange, and Tornado Cash.
These claims raised fears that compromised actors could gain influence inside a company closely tied to the US presidency, given WLFI’s governance-based token structure.
World Liberty Financial has strongly denied the allegations, insisting that it performs “rigorous AML and KYC checks” on all token purchasers.
A company spokesperson said it had rejected millions of dollars in attempted token buys that failed compliance reviews.
But despite the denial, Warren and Reed maintain that the evidence warrants a comprehensive review, citing the national-security implications of allowing foreign operatives even indirect access to a platform with high-level political ties.
Conflict-of-interest concerns intensify
A major point of contention revolves around WLFI’s ownership and token distribution.
World Liberty Financial lists Eric Trump, Donald Trump Jr., and Barron Trump as co-founders, while Donald Trump is named “co-founder emeritus.”
A Trump-affiliated entity, DT Marks DEFI LLC, controls 22.5 billion WLFI tokens and receives 75% of the revenue from token sales.
This structure has fueled accusations that government officials could face conflicts of interest if their duties intersect with actions that financially benefit the President and his family.
Senators Warren and Reed argue that this financial arrangement creates an environment where compliance decisions may clash with the Trump family’s business incentives.
They added that selling WLFI governance tokens to questionable buyers “hands a seat at the table” to actors linked to hostile foreign states.
The concerns extend beyond token sales. WLFI’s stablecoin, USD1, has also drawn scrutiny after it was reportedly used by UAE-backed fund MGX in a $2 billion investment into Binance.
Shortly after the deal, Binance founder Changpeng Zhao received a presidential pardon, reigniting debate about whether personal or financial interests may have influenced official actions, although Trump denied any connection, saying he did not know Zhao.
World Liberty Financial (WLFI) market outlook amid the allegations
With oversight debates heating up, supporters and critics alike are watching how the controversy affects World Liberty Financial’s broader expansion plans.
The company has pitched a future built around digital assets, tokenised commodities, and new payment tools, and its rapid rise has made it a dominant force in political and financial discussions.
While the company expands, its native token, World Liberty Financial (WLFI), has remained volatile.
Over the past year, the value of WLFI has decreased by over 39% adding to the overall 53% depreciation from its initial price.
At the time of writing, the World Liberty Financial (WLFI) price was approximately $0.14, with a market capitalisation exceeding $3.8 billion and a daily trading volume of nearly $159 million.
Most notably, the token’s value has fluctuated within the $0.1369 to $0.1455 range in the past 24 hours, reflecting uncertainty as investigations loom.
Whether regulators act on the senators’ requests could shape the next phase for the platform and the World Liberty Financial (WLFI) token price.
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