Adversaries Reportedly Received Voting Rights in Crypto Company Supported by Trump

Trump-Endorsed

Under Investigation for Suspected Connections to Sanctioned Groups

U.S. Senators Elizabeth Warren and Jack Reed have called for a federal probe into World Liberty Financial (WLF), a cryptocurrency company with strong links to former President Donald Trump and his family. Their concerns center on potential security threats arising from token sales to parties associated with North Korea, Russia, and Iran.

, alleges that WLF neglected to enforce effective anti-money laundering (AML) protocols, which may have allowed foreign adversaries to gain influence over the company’s governance.

that WLF distributed its governance tokens ($WLFI) to individuals with blockchain links to North Korea’s Lazarus Group, a sanctioned Russian platform designed to evade ruble sanctions, an Iranian crypto exchange, and Tornado Cash, a service known for money laundering. The senators argued these transactions "allowed adversaries to participate in governance," giving them voting power within WLF’s protocol. WLF has refuted these claims, asserting it performed "thorough AML/KYC screenings" and blocked millions of dollars in attempted purchases from unverified sources .

The Trump family’s financial involvement in WLF has intensified the debate. DT Marks DEFI LLC, a company connected to Donald Trump and his relatives, owns 22.5 billion $WLFI tokens—worth more than $3 billion—and receives 75% of the revenue from token sales. This arrangement,

, creates a direct conflict of interest, as Trump administration insiders may prioritize token sales for personal gain, potentially at the expense of compliance measures. WLF’s plans for growth— , they noted, raise further alarms about the risk of enabling illicit financial activities.

WLF’s approach to governance has attracted increased attention from regulators. The company’s whitepaper describes it as a "bank-like" institution offering crypto financial services, but its leadership includes Trump family members—Eric Trump, Donald Trump Jr., and Barron Trump—alongside CEO Zach Witkoff, whose father is U.S. Special Envoy to the Middle East Steve Witkoff

. Critics say this blend of political and business interests threatens transparency.

The investigation comes as crypto regulation remains a contentious issue.

for overriding state-level AI and crypto rules, warning on Truth Social that a "patchwork of 50 State Regulatory Regimes" could hinder innovation. House Republicans, including Majority Leader Steve Scalise, are considering ways to prevent states from regulating AI, aligning with Trump’s push for a single federal standard . However, the ongoing conflict between pro-crypto initiatives and national security concerns, especially after WLF’s USD1 stablecoin was used in a $2 billion investment from a UAE-backed fund into Binance.

WLF has not yet issued a direct response to the Senate’s requests but has previously defended its practices.

accusations of conflicts of interest "utterly baseless," maintaining that his father "is not concerned with stablecoins." Meanwhile, the Treasury and Justice Department have not issued statements regarding the matter.

As lawmakers consider new crypto regulations, this situation underscores the dangers of governance tokens operating outside current oversight.

reportedly invested in crypto-related businesses, the senators’ demand for an inquiry reflects growing concern over the intersection of political influence and decentralized finance.