Democratic Senators Elizabeth Warren (D-MA) and Jack Reed (D-RI) demanded an investigation by the U.S. Department of Justice (DOJ) and the Treasury Department into World Liberty Financial (WLFI), a cryptocurrency firm closely tied to President Donald Trump and his family.
The probe focuses on allegations that WLFI sold governance tokens to entities linked to illicit actors, including North Korea’s state-sponsored Lazarus Group, Russian operatives, and sanctioned money-laundering services like Tornado Cash.
This marks the latest in a series of Democratic-led efforts to scrutinize Trump’s expanding crypto ventures amid concerns over conflicts of interest, national security risks, and potential corruption.
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The senators’ letter highlights a report from the nonprofit watchdog group Democracy Defenders Action, which claims WLFI sold approximately 600,000 WLFI tokens valued at around $10,000 at the time to a wallet address “Shryder.eth” controlled by the Lazarus Group.
This North Korean hacking syndicate has been sanctioned by the Treasury’s Office of Foreign Assets Control (OFAC) for cybercrimes, including thefts funding weapons programs. Additional concerns include: Ties to Russia and Iran: Sales to addresses associated with Russian oligarchs and Iranian networks evading sanctions.
WLFI’s governance token model allegedly allows bad actors to gain influence without proper vetting, potentially enabling money laundering or foreign interference. The requests come as Congress debates crypto regulations that could exempt tokens like WLFI from scrutiny, coinciding with Trump’s 2024 financial disclosures showing his crypto holdings boosted his wealth by millions.
Warren, a longtime crypto critic and ranking member of the Senate Banking Committee, emphasized the need for enforcement actions by December 1, 2025, to address “staggering conflicts of interest” in Trump’s administration.
This demand is part of an ongoing pattern of investigations into Trump’s crypto activities since his January 2025 inauguration. Democrats, often outnumbered in Congress, have used letters, hearings, and ethics referrals to highlight potential violations of bribery laws, the foreign emoluments clause, and campaign finance rules.
House Oversight Democrats request probe into Trump’s business ties. Focus on WLFI and $TRUMP memecoin as “profound conflicts” amid pro-crypto executive orders. Cite WLFI’s $2B UAE deal with Binance as “quid pro quo” risking national security.
Request Treasury data on WLFI, $TRUMP, Elon Musk’s America PAC, and GOP platform WinRed for fraud/bribery. House Judiciary demands investor list from $TRUMP dinner. Probe private dinner for top $TRUMP holders as potential “pay-for-play” scheme.
35 House Democrats call for DOJ bribery investigation. Allege $TRUMP dinner violates ethics; note $320M in fees, foreign holders like Justin Sun. Senate probes Trump aides’ crypto-chip deals. Investigate UAE chip exports post-WLFI Binance deal; ethics violations for officials like Steve Witkoff.
Eight senators demand ethics disclosures. Question Witkoff’s WLFI stakes amid Middle East envoy role and UAE ties. Senate launches probe into CZ pardon. Scrutinize Trump’s October 23 pardon of Binance founder Changpeng Zhao after $30M WLFI investment.
These efforts have stalled some bipartisan crypto bills, like stablecoin regulations, as Democrats push for anti-fraud amendments. Critics, including former GOP ethics chair Charles Dent, warn of “foreign entities currying favor” with Trump.
No official White House comment as of November 19, but allies like Binance pardoned founder and UAE partners have dismissed probes as partisan. Crypto advocates argue regulations could stifle growth, especially with Trump’s pro-industry agenda.
If pursued, the DOJ/Treasury probe could lead to sanctions, asset freezes, or new laws targeting governance tokens. However, with Republican control of Congress and the administration, formal action remains unlikely without bipartisan support.
This scrutiny underscores tensions between Trump’s deregulatory push for crypto—projected to add billions to his wealth—and Democratic calls for accountability to prevent illicit finance.