Senators Demand Probe Into Trump-Linked Crypto Firm Over Alleged Sanctions Violations

U.S. Senators Elizabeth Warren and Jack Reed have escalated pressure on World Liberty Financial (WLFI), urging federal investigations into the crypto firm's alleged ties to sanctioned entities. The lawmakers' letter to the Justice Department and Treasury highlights potential national security risks stemming from WLFI's token sales to organizations connected with North Korea's Lazarus Group, Iran, and Russia.

The bipartisan appeal underscores growing regulatory scrutiny of cryptocurrency networks' compliance frameworks. Warren and Reed specifically cite WLFI's apparent lack of anti-money laundering safeguards and governance controls, which they argue could facilitate illicit financial flows. The December 1 deadline for enforcement recommendations signals impending regulatory action.

Political dimensions amplify the case, with the senators noting financial conflicts involving the TRUMP family's WLFI connections. This development occurs amid heightened Washington focus on cryptocurrency's role in circumventing economic sanctions, particularly through privacy-focused tokens and decentralized exchanges.