Concerns around one of the Trump family’s crypto projects have resurfaced in Washington, and two US senators are now urging federal agencies to take a closer look.
Their latest request centers on whether World Liberty Financial (WLFI), a token project backed by Donald Trump’s inner circle, may have allowed purchases from people or groups tied to sanctioned nations.
Senators Raise Red Flags Over Token Purchases
A new letter, obtained by CNBC, shows Democratic Senators Elizabeth Warren and Jack Reed calling for the Department of Justice and the US Treasury to investigate WLFI’s token sale.
Their argument is straightforward: if the company let individuals connected to Russia, North Korea, or other sanctioned actors buy governance tokens, it could pose a national security threat.
The lawmakers reportedly referenced a recent review by watchdog group Accountable.US, which claimed that WLFI’s pre-sale included purchases from entities flagged for suspicious activity.
Among the examples cited were traders allegedly linked to North Korea’s Lazarus Group, wallets connected to Russia’s A7A5 ruble-backed stablecoin, and users from Iran’s major crypto exchange Nobitex.
To Warren and Reed, these allegations indicate that WLFI hasn’t put strong enough anti-money-laundering defenses in place and may have exposed itself to dangerous financial channels.
Worries Over Influence, Governance, and Conflicts of Interest
Beyond sanctions concerns, the senators expressed a deeper worry: that WLFI’s structure could give questionable actors a voice in the company’s governance.
Since the token confers voting rights, ownership by bad actors could theoretically allow them influence over decisions within a US-connected crypto business.
Their letter also points to a potential conflict of interest. Because the venture is tied to the Trump family, they argue that US officials serving under President Trump could feel pressure to prioritize token sales over adequate compliance — a dynamic they describe as risky, especially when national security issues are involved.
WLFI Pushes Back and Denies Any Wrongdoing
World Liberty Financial quickly rejected the claims. A company spokesperson told CNBC that WLFI has “zero political power” and dismissed talk of conflicts of interest.
They also insisted that the project performed strict KYC/AML checks on every pre-sale buyer, describing their process as among the highest standards in the industry.
According to the spokesperson, WLFI even turned down “millions of dollars” from buyers who couldn’t meet its verification requirements.
Ongoing Scrutiny of Trump-Connected Crypto Projects
This isn’t the first time Democratic lawmakers have questioned Trump-related crypto efforts.
They’ve previously demanded clarity on several of the Trump family’s digital asset ventures and even raised concerns about the president’s involvement in recent decisions — including the controversial pardon of Binance founder Changpeng Zhao.
The senators say the timing of their latest inquiry matters. Congress is currently weighing new legislation that could reshape how digital asset companies operate in the US.
Some of those proposals could grant governance tokens, like WLFI’s, lighter regulatory oversight — something Warren and Reed argue could leave gaps that bad actors may exploit.
Their letter asks the Treasury and DOJ to respond with details on any findings related to WLFI before December 1.
Market Reaction and What Comes Next
WLFI’s token price, which sits around $0.14 on weekly charts, hasn’t reacted dramatically so far — though any formal investigation could shift momentum.
For now, the situation highlights a growing debate in Washington: how to regulate crypto firms tied to political figures, and how to ensure digital assets don’t become a shadow channel for sanctioned or adversarial groups.
With congressional decisions on crypto regulation approaching, this latest dispute is likely just the beginning of a wider conversation.
Share on Facebook «||» Share on Twitter «||» Share on Reddit «||» Share on LinkedIn