US Senators Probe Trump-Linked Crypto Token for Suspected Ties to Adversaries
A shadowy web of potential international illicit finance is casting a dark cloud over a cryptocurrency venture linked to the Trump family. US Senators Elizabeth Warren and Jack Reed have ignited a formal inquiry into World Liberty Financial (WLF), a crypto company reportedly connected to former President Donald Trump and his kin, due to alarming allegations of dealings with entities operating under sanctions in North Korea, Russia, and Iran. The senators' concern is palpable: that WLF, despite its purported aims, may inadvertently be facilitating hostile foreign influence and financial misconduct.
National Security Concerns Over Token Governance
In a sternly worded letter, the senators articulated profound worries that World Liberty Financial lacks adequate safeguards to prevent the illicit movement of funds or the insidious infiltration of its governance structure by malicious actors. "By selling World Liberty Financial tokens, it has taken money from individuals with clear and apparent ties to US adversaries and elevated national security risks by giving them a 'seat at the table' to influence the company's management," the missive emphatically states. This suggests a fundamental vulnerability where individuals or groups with adversarial intent could potentially gain leverage over a system designed to be decentralized, thereby undermining US interests.
Alarming Connections Revealed by Watchdog Group
The senators' probe is heavily influenced by a September report from the watchdog organization Accountable.US. This report paints a disturbing picture, detailing how World Liberty Financial, as early as January, allegedly sold tokens worth $10,000 to an individual identified by the wallet address 0x9009. This address has been linked to the notorious North Korean hacking syndicate Lazarus Group. Furthermore, the same transaction allegedly involved a sanctioned Russian token, A7A5, the Iranian cryptocurrency exchange NoBitex.ir, and Tornado Cash, a privacy mixer widely known as a haven for money laundering. These associations are not merely coincidental; they point towards a potential conduit for circumventing international sanctions and funneling illicit proceeds.
World Liberty Financial's Defense and Token Utility
In response to these serious accusations, World Liberty Financial has vehemently denied any wrongdoing. A spokesperson for the company asserted to CNBC that WLF conducted rigorous Anti-Money Laundering (AML) and Know Your Customer (KYC) checks on every purchaser of $WLFI tokens during its presale phase. They further claim that millions of dollars from prospective buyers who failed these checks were rejected. The company's website lists Eric Trump, Donald Trump Jr., and Barron Trump as co-founders. The $WLFI governance tokens, released in September, are touted as granting holders a crucial role in shaping the future of the protocol, including the ability to propose and vote on company initiatives. This structure, however, is precisely what raises red flags regarding potential influence and control.
Financial Stakes and Critical Timing
Adding another layer of complexity, the Trump-affiliated company DT Marks DEFI LLC holds a staggering 22.5 billion $WLFI tokens, valued at over $3 billion. Crucially, this entity is entitled to 75% of the revenue generated from token sales. The senators highlight that this means three-quarters of every governance token sale directly benefits former President Trump. The timing of this inquiry is deemed critical, as Congress is actively deliberating new cryptocurrency regulations. The senators fear that without swift action, these tokens could evade current US oversight, potentially absolving issuers of future accountability – a prospect that carries significant implications for financial integrity and national security.
Comments (0)
There are no comments for now