Senators Urge Investigation into Trump’s World Liberty Financial

In a significant move, Democratic Senators Elizabeth Warren and Jack Reed have formally requested that the Justice Department and the Treasury Department launch an investigation into World Liberty Financial (WLFI). This call to action follows allegations from a watchdog organization that WLFI's token sales may have connections to wallets associated with North Korea's notorious Lazarus Group, a ruble token linked to Russia, an Iranian exchange, and users of the controversial Tornado Cash.

The senators' referral comes on the heels of a report released by Accountable US in September, which detailed wallet-level interactions and timelines involving dozens of buyers across these troubling categories. The findings have raised alarm bells regarding potential sanctions violations.

According to WLFI's own documentation, DT Marks DeFi LLC—an entity affiliated with Donald Trump—and certain family members possess 22.5 billion WLFI tokens, which entitles them to receive 75% of the net proceeds from token sales through a service agreement. This arrangement is claimed by World Liberty Financial to be a core component of their economic model and necessary disclosures.

The concentration of both token ownership and the economic benefits derived from sales has become a focal point of the senators' inquiry, particularly as any exposure to sanctions could potentially connect back to entities linked to the former President's business interests.

The September report from Accountable US highlighted multiple concerning buyer interactions, including one linked to a Lazarus-associated wallet and another involved with Iran’s Nobitex exchange. Additionally, it noted transactions connected to a ruble-backed token, as well as 62 buyers who had previously engaged with Tornado Cash. These associations were prevalent during both presale and early sale phases.

World Liberty Financial has publicly asserted that it conducts thorough vetting of its buyers through Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. If these claims are verified, the Treasury's investigation will likely delve into the effectiveness of these controls, rather than merely examining the presence of policies, as the Office of Foreign Assets Control (OFAC) operates with a strict liability standard concerning civil sanctions.

Under OFAC's compliance framework, companies involved in virtual currency transactions are expected to implement various controls including screening, geofencing, escalation protocols, and thorough audit trails capable of withstanding scrutiny post-transactions. This regulatory environment complicates the narrative surrounding World Liberty Financial's operations.

It’s noteworthy that the United States lifted sanctions on Tornado Cash on March 21, 2025, following extensive legal challenges. However, any activities involving Tornado Cash during the time it was sanctioned remain subject to OFAC's oversight. Consequently, transactions tied to still-sanctioned parties, including those connected to North Korea, remain unaffected by the change regarding Tornado Cash. This indicates that the timing and nature of the alleged buyer interactions with WLFI are critical to understanding the situation, rather than simply categorizing them as “Tornado users.”

The national security implications of these allegations are particularly pressing. The FBI has linked a $1.5 billion hack of Bybit earlier this year to North Korean activities, thus keeping DPRK-related cryptocurrency theft at the forefront of sanctions and AML policy considerations. This incident is one of the largest hacks on record and underscores a troubling trend that has prompted heightened enforcement actions.

The senators’ letter is contextualized within a broader pattern where even inadvertent interactions with sanctioned entities can lead to civil liability. In this environment, the effectiveness of remedial controls is evaluated based on their performance rather than the intent behind the actions.

The financial profile of World Liberty Financial has not gone unnoticed. In June, Reuters reported that a fund based in the UAE had committed a staggering $100 million to WLFI tokens. Furthermore, a separate report from 2025 estimated that WLFI had raised over $550 million earlier in the year.

If the Treasury or the DOJ finds evidence of sanctionable activities within these transactions, it could lead to blocking orders and financial penalties that might impact not only the project wallets but also the distributions outlined in the service agreement. The financial ramifications could be significant for all parties involved, especially in light of the potential sanctions exposure.

As the investigation unfolds, the scrutiny surrounding World Liberty Financial and its connections to controversial entities continues to grow, raising questions about the integrity of cryptocurrency transactions and the regulatory frameworks governing them.