Democrats Target Trump-Linked Crypto Firm as ZachXBT Counters Regulatory Claims
U.S. Senators Elizabeth Warren and Jack Reed have escalated political pressure on World Liberty Financial, a cryptocurrency firm with ties to former President Donald Trump. The lawmakers have urged the Department of Justice and Treasury to probe potential AML violations, citing a report alleging $10,000 in token sales to wallets linked to North Korea, Iran, and sanctioned mixer Tornado Cash.
On-chain investigator ZachXBT dismissed the allegations as statistically insignificant, noting the disputed transactions represent just 0.0018% of the firm's $550 million fundraising total. The analyst warned of regulatory overreach, suggesting platforms like Hyperliquid could face similar scrutiny if such standards are applied.
The debate has ignited social media controversy, with critics questioning the proportionality of the investigation while others challenge ZachXBT's defense of the crypto industry's compliance practices.
