Senators warn Trump-linked crypto firm may pose national security threat
World Liberty Financial (WLFI), a cryptocurrency firm associated with Donald Trump and his family, is under scrutiny by Democratic senators. Senators Elizabeth Warren and Jack Reed have called for an investigation into the company, citing concerns regarding potential national security risks from alleged token sales to wallets connected to sanctioned entities in North Korea and Russia. A watchdog report claimed that WLFI sold tokens to addresses linked to North Korea's Lazarus Group and other sanctioned groups. WLFI’s governance token sales were criticized as potentially granting adversaries influence within the protocol. The firm, co-founded by members of the Trump family, dismissed the allegations, stating they enforced stringent anti-money laundering regulations. However, blockchain researcher Nick Bax contested the claims, suggesting they resulted from false positives related to a joke memecoin, not genuine transactions with sanctioned entities. The political implications also raised concerns about conflicts of interest due to the significant revenue the Trump family could gain from WLFI's operations.
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