US Senators Demand Probe Into Trump-Linked Crypto Firm Over Alleged Ties to North Korea and Russia

US Senators Elizabeth Warren and Jack Reed have called for an urgent investigation into World Liberty Financial (WLF), a cryptocurrency firm with ties to President Donald Trump's family, over allegations of selling tokens to entities linked to North Korea and Russia, posing potential national security risks.

The senators sent a formal letter to Attorney General Pamela Bondi and Treasury Secretary Scott Bessent, citing a report by the nonprofit watchdog Accountable. WLF allegedly sold $10,000 worth of $WLFI tokens to traders connected to North Korea's Lazarus Group, a hacking organization known for cybercrime, and to Russian entities using platforms like Tornado Cash to evade sanctions. The letter emphasized the lack of robust anti-money laundering (AML) controls, which could enable illicit finance to flourish, especially with WLF's plans for future expansions, including a debit card and tokenized commodities.

The Trump family's involvement is a key concern, with Donald Trump's children—Eric, Donald Jr., and Barron Trump—listed as co-founders, and Donald Trump as a "Co-Founder Emeritus." The senators noted that 75% of the proceeds from $WLFI token sales go to DT Marks DEFI LLC, a Trump-associated entity, raising issues of financial conflicts of interest for U.S. government officials.

Warren and Reed urged the Department of Justice and Treasury Department to provide an update on potential enforcement actions by December 1, warning that without strong regulation, crypto ventures like WLF could undermine national security. This comes as Congress debates new cryptocurrency legislation that might limit oversight on governance tokens.