Trump-Linked WLFI Faces Federal Probe Request Over Alleged Token Sales To North Korea, Russia: Report

• The request for a probe comes after Accountable.US claimed WLFI sold tokens to buyers linked to North Korea hacking groups and sanctioned Russian actors.
• Regulators are being asked to examine whether WLFI has appropriate compliance and governance controls.
• WLFI’s official website lists President Donald Trump as ‘Co-Founder Emeritus.’

U.S. Senators Elizabeth Warren and Jack Reed are reportedly requesting a federal investigation into the financial structure of the Trump family–led World Liberty Financial (WLFI), CNBC reported on Monday.

In a letter sent to both the Department of Justice and the Treasury Department, as cited by CNBC, the senators urged regulators to examine whether WLFI has sufficient controls in place to prevent illicit actors from using the platform or influencing its governance.

WLFI’s price dropped more than 5% in the last 24 hours amid the broader sell-off in the cryptocurrency market. Retail sentiment on Stocktwits around the altcoin fell to ‘bearish’ from ‘neutral’ territory over the past day. 

Lawmakers Argue It’s Not Safe Enough

The senators cited findings from 501(c)(3) nonprofit watchdog Accountable.US, which raised concerns about WLFI’s token sales and vetting processes. According to the report’s findings, WLFI sold $10,000 worth of $WLFI tokens in January to traders connected to a wallet now sanctioned for ties to North Korea’s Lazarus Group.

“By selling tokens to parties with open and obvious connections to enemies of the U.S., WLFI raised national security risks by giving them a seat at the table,” the senators wrote. They warned the token sales suggest an “absence of robust sanctions and anti-money laundering controls,” which could “supercharge illicit finance activity.”

The letter also flagged potential conflicts of interest, noting that Trump family members hold key equity stakes. The senators said the allegations warranted immediate review, given the national-security implications tied to digital asset flows involving sanctioned or hostile foreign actors.

The Trump Connection

World Liberty Financial’s website lists Eric Trump, Donald Trump Jr., and Barron Trump as co-founders, with Donald Trump serving as the “Co-Founder Emeritus.” It stated that WLFI holders are granted governance rights, including the ability to propose and vote on company initiatives.

This isn’t the first time that Accountable.US has pointed to conflicts of interest between Trump and his crypto businesses. In a separate August report, the firm estimated that roughly $11.6 billion, or 73% of Trump’s net worth, is tied to cryptocurrency ventures, including the Official Trump (TRUMP) memecoin. 

TRUMP’s price dipped 1.6% in the last 24 hours, with retail sentiment on Stocktwits trending in ‘bearish’ territory over the past day. 

Once a crypto skeptic, Trump has since embraced digital assets during his second term, supporting legislation such as the GENIUS Act. The senators requested that the Justice and Treasury Departments provide information on potential enforcement actions against WLFI by Dec. 1.

Read also: BTC Price Rebounds To $91,000 After $1 Billion Crypto Liquidation Wave

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on