Senator Torches Trump-Linked WLF Over ’Deflective’ Inquiry Response—’Like a DeFi Whitepaper, All Buzz, No Substance’
Political pressure mounts as a U.S. senator eviscerates the Washington Legal Foundation’s ’cryptic, non-committal’ reply to a high-stakes oversight request. Critics draw parallels to vaporware ICOs—’all hype, zero deliverables.’
The WLF, known for its conservative leanings and ties to former President Trump, now faces scrutiny for what insiders call a ’copy-paste legal evasion’ tactic. Sound familiar? *Cough* stablecoin audits *cough*.
One finance lobbyist muttered: ’At least when Wall Street gives us boilerplate, they throw in a three-martini lunch.’
Senator Blumenthal slams WLF over “inadequate” response
World Liberty Finance is a decentralized financial platform led by Zak Folkman, Chase Herro, the Trump Family, and the Witkoff family, who have close ties to the Trumps. The platform allows users to trade, lend, and borrow digital assets without intervention from third-party intermediaries such as banks. The project was launched in September, in the lead up to the United States presidential election, raising about $550 million in a token sale. In addition, the platform also issued its stablecoin in March.
Earlier this month, Senator Blumenthal, who is a permanent ranking member on the Senate’s Permanent Subcommittee on Investigations sent a letter for the decentralized firm’s leadership, informing them of a potential investigation over violation of government ethics requirements and other laws, including the foreign emoluments clause of the US constitution. This particular clause was created to prohibit federal officials from accepting salaries, fees, or profits from foreign governments without the consent of Congress.
The inquiry was opened days after World Liberty Finance, which is partly owned by the US President and his sons, announced a $2 billion deal with the UAE government and facilitated by World Liberty Finance’s new stablecoin USD1. Before then, the platform had also agreed to advise the Pakistani government on issues related to cryptocurrencies. “Historic day for @worldlibertyfi at our MOU signing ceremony in Pakistan today. We are looking forward to bringing diversity and financial inclusion to the next generation in Pakistan and beyond,” Zach Witkoff said on X in reaction to the update.
Blumenthal sounds alarm over national security risks
According to Blumenthal, businesses like those carried out by World Liberty Finance pose unprecedented conflicts of interest and national security. He also asked the company to submit key details to the Senate’s Investigations Subcommittee, including details regarding President Trump’s involvement in the firm’s operations. However, the Thursday response by WLF’s attorneys made the Senator furious, with the attorneys dismissing his queries which they claimed contained inaccuracies and fundamentally flawed inferences. In addition, he mentioned that he will continue to demand transparency for the American people.
“The Company has exercised rigorous diligence to ensure compliance with applicable legal and regulatory obligations at every stage,” World Liberty’s attorney, Teresa Goody Guillén, said. While the letter discussed the importance of World Liberty Finance’s mission of democratizing access to the financial system, it refused to address questions regarding the stake of President Trump in the company or a potential conflict of interest posed by its dealings with foreign governments. It also did not provide a direct response to any information that Blumenthal requested about the firm’s operations.
Inquiries into the Trump family’s crypto dealings are now on the rise across Capitol Hill, as Democrats are seizing the narrative. On Wednesday, Treasury Secretary Scott Bessent received a letter from House Democrats, which demanded access to any suspicious activity reports (SARs) his department may have filed in recent months regarding the president’s numerous crypto dealings. The letter was written by ranking members Representatives Gerald Connolly, Joseph Morelle, and Jamie Rakin, requesting information to investigate potential election fraud, corruption, and foreign influence.
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