Senators call for probe into Trump-linked crypto firm over security risks

Democratic senators Elizabeth Warren and Jack Reed are urging a federal investigation into World Liberty Financial Inc. (WLFI), a crypto company associated with Donald Trump, over concerns that it sold tokens to wallets linked to North Korean and Russian entities. They highlighted that WLFI’s governance tokens were allegedly acquired by addresses connected to sanctioned actors, jeopardizing U.S. national security. This call for action follows a report from watchdog group Accountable.US, which implicated WLFI in transactions related to North Korea's Lazarus Group and an Iranian crypto exchange. WLFI denied these allegations, asserting it conducted strict anti-money laundering checks but faces scrutiny due to its leadership, which includes Trump family members. The senators emphasized that the financial ties present a conflict of interest as the company’s profits directly benefit Trump and his family. They warned that WLFI's activities could facilitate illicit finance, although a blockchain expert countered claims of North Korean involvement, attributing them to a misunderstanding regarding token interactions. The political implications of the firm’s ownership are significant given its ties to a former president.

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