In the latest blockchain news, US President Donald Trump’s phenomenal crypto venture, World Liberty Financial, is facing intense scrutiny from US Senators. Recent reports reveal that two US Senators- Elizabeth Warren and Jack Reed- have raised their voice against the blockchain project, citing concerns about serious economic and national security implications.
In a letter written on Monday and addressed to Attorney General Pamela Bondi and Treasury Secretary Scott Bessent, the two US Senators questioned World Liberty Financial’s lack of security measures. They have also pointed out the entity’s possible links to suspicious organisations, including the North Korean hackers.
World Liberty Financial Under Fire: US Senators Probe
According to a recent CNBC report, the US Senators Elizabeth Warren and Jack Reed have urged the Department of Justice and Treasury to launch a serious investigation into President Donald Trump’s crypto project, World Liberty Financial. They wrote a letter to Pamela Bondi and Scott Bessent, arguing that the WLF has alleged links to North Korean hackers and other illicit entities.
Reportedly, the senators warned against the possible national security risks due to the platform’s insufficient safeguards. Referring to a September report from Accountable.US, a nonprofit corporate watchdog, the senators posited that World Liberty Financial had financial dealings with various “highly suspicious” organisations.
As per their statement, WLF has sold its WLFI tokens to traders with ties to multiple illicit entities like the North Hackers, Russia’s “Ruble-backed sanctions evasion tool,” Iranian crypto exchange, and Tornado Cash, a previously sanctioned crypto exchange. Although the sanction was lifted in March 2025, the senators described it as a money laundering platform.
Here are the Red Flags Raised by the Senators
Significantly, Senators Elizabeth Warren and Jack Reed spotted national security risks and conflicts of interest in connection with Trump’s World Liberty Financial. The company’s plans to expand and launch new products, including a debit card and tokenized commodity assets, have raised concerns over the lack of robust sanctions and anti-money laundering controls.
WLF’s reported token sales to entities linked to North Korea and Russia may indicate inadequate sanctions and anti-money laundering controls, increasing the risks of illicit financial activities.
Furthermore, the Trump family’s significant stake in World Liberty Financial creates a financial conflict of interest for Trump Administration officials, who may prioritize token sales over compliance activities that could impact their wealth. The senators warned that this could “supercharge illicit finance activity” and benefit the Trump family at the expense of regulatory oversight. “That means every time a governance token is sold, three-quarters of that money goes directly to President Trump and his family, even for sales to entities linked to North Korea and Russia,” stated the Senators. They added,
“…As Congress considers legislation on the market structure for digital assets, we must ensure that crypto interests do not profit at the expense of U.S. national security and that illicit actors are not handed the keys to financial platforms that they can later exploit.”
As per reports, Donald Trump’s net worth has seen a significant increase from his crypto projects, recording more than $11.6 billion, or 73% of his net worth. These include the launch of his TRUMP memecoin and the World Liberty Financial blockchain project. And most recently, the Trump Organization and Dar Global joined hands to launch the Trump International Hotel Maldives.
