U.S. Senators Call for Federal Investigation into Trump-Linked Cryptocurrency WLFI, Calling for National Security Threat

Democratic senators have accused WLFI, a cryptocurrency project closely linked to the Trump family, of selling governance tokens to wallets linked to North Korea and Russia.
On the 19th (local time), several foreign media outlets reported that World Liberty Fund, a cryptocurrency company associated with US President Donald Trump and his family,
The report said that World Liberty Financial (WLFI) is facing political and regulatory pressure over its ties to sanctioned countries.
According to CNBC, Democratic Senators Elizabeth Warren and Jack Reed wrote to Attorney General Pamela Bondi and Treasury Secretary Scott Bessent:
In a letter, the group said it had "evidence that WLFI tokens were sold to sanctioned foreign wallets, potentially posing a threat to U.S. national security."
The concerns stem from a report published last September by the watchdog group Accountable.US.
The report also found that WLFI was linked to the North Korean hacking group Lazarus Group, Russian sanctions evasion tools, Iranian cryptocurrency exchanges, and the anonymization service Tornado Cash.
The senators strongly criticized the transaction, saying it was "like giving a seat at the table to a hostile country."
In response, they countered by saying, "We conducted thorough AML/KYC on all presale participants and rejected millions of dollars of funds that did not pass the screening."
Further complicating the debate is WLFI's ownership structure, which, according to the company's website, is owned by Eric Trump, Donald Trump Jr.
Nia and Barron Trump are listed as co-founders, with the US President described as an "honorary co-founder (Co-Founder Emeritus)."
Furthermore, Trump's corporation, DT Marks DEFI
LLC holds 22.5 billion WLFI tokens (worth approximately $3 billion) and sells them
The senators criticized the system, saying it "creates a clear conflict of interest, with three-quarters of the revenue going to the President of the United States and his family."
Warren and Reid pointed out that WLFI is rushing to expand its debit card business and asset tokenization, but that its compliance system is insufficient.
"There is a risk that the transaction will be prolonged," he warned. WLFI's USD1 stablecoin was also recently used in a $2 billion investment into Binance by UAE-backed fund MGX.
The withdrawal coincides with the UAE's semiconductor negotiations with the United States, further intensifying the political debate.