U.S. Senators Launch Probe into Trump-Linked Crypto Venture Over Alleged Ties to North Korea and Russia
November 18, 2025 — Two prominent U.S. Senators are pushing for a federal investigation into World Liberty Financial (WLF), a cryptocurrency firm closely associated with former President Donald Trump and his family. The lawmakers cite concerns over the company’s reported sales of governance tokens to entities allegedly connected with sanctioned actors in North Korea, Russia, Iran, and known money laundering platforms, raising significant national security alarms.
Senators Warren and Reed Call for DOJ and Treasury Inquiry
Democratic Senators Elizabeth Warren (Massachusetts) and Jack Reed (Rhode Island), both members of the Senate Banking, Housing, and Urban Affairs Committee, have formally requested the Department of Justice and the Treasury Department to investigate World Liberty Financial. Their letter, sent on November 18 and obtained exclusively by CNBC, highlights concerns that WLF may be vulnerable to exploitation by illicit actors and lacks sufficient safeguards against misuse of its platform.
The Senators’ concerns revolve around sales of WLF’s governance token, $WLFI. According to their letter, a 501(c)(3) watchdog group, Accountable.US, reported that the company sold tokens to "various highly suspicious entities," which have blockchain ties to notorious North Korean hacking groups, sanctioned Russian ruble-backed sanctions evasion tools, an Iranian cryptocurrency exchange, and Tornado Cash, a platform flagged for money laundering.
Allegations of National Security Risks and Conflicts of Interest
World Liberty Financial is co-founded and extensively owned by members of the Trump family, including Eric Trump, Donald Trump Jr., and Barron Trump, with Donald Trump himself listed as "Co-Founder Emeritus." The Senators warn that the company’s links to the Trump family present a potential conflict of interest, especially as an affiliated entity, DT Marks DEFI LLC, holds 22.5 billion $WLFI tokens worth over $3 billion and is entitled to 75% of proceeds from token sales.
The letter emphasizes that proceeds from token sales—including those to questionable actors—could directly enrich the Trump family. Furthermore, the Senators argue that lacking robust anti-money laundering (AML) and know-your-customer (KYC) controls, WLF poses a risk of enabling illicit finance activity, which could "supercharge" criminal enterprises.
World Liberty Financial Denies Wrongdoing
In response to the allegations, a spokesperson for World Liberty Financial told CNBC that the company has implemented "rigorous AML/KYC checks on every pre-sale purchaser of the $WLFI governance token" and has rejected millions of dollars from potential buyers who did not meet these standards. The company further denied any conflict of interest with the U.S. government, emphasizing it is a private crypto firm with no political power.
Background: Governance Tokens, Expansion, and Congressional Crypto Regulation
World Liberty Financial has recently made its $WLFI tokens available for public trading after earlier private rounds. Holders of these governance tokens can propose and vote on company decisions, effectively influencing its path. The Senators raised alarms about who the holders actually are, given some have questionable ties.
WLF has announced plans to expand its product offerings, including launching a debit card and tokenized commodity assets. The Senators caution that such expansions heighten the stakes and risks if bad actors gain influence over governance.
Their inquiry comes amid ongoing congressional deliberations over digital asset regulation, which could potentially exclude governance tokens like $WLFI from strict oversight, including recordkeeping and transparency requirements.
The Broader Crypto Context Around Trump and Allies
Former President Trump, who expressed skepticism toward cryptocurrencies during his first term, has since become an advocate for the industry. His administration supported crypto-friendly legislation, including the recently passed GENIUS Act.
Trump’s ventures into crypto reportedly also include the launch of a $TRUMP memecoin. A 2024 financial disclosure suggested his cryptocurrency activities added substantially to his net worth. Accountable.US estimated roughly 73% of Trump’s net worth, approximately $11.6 billion, is tied to these crypto-related ventures.
Additional Scrutiny: Binance Connection and UAE Investment
The Senators’ investigation overlaps with broader scrutiny into cryptocurrency dealings recently linked to the United Arab Emirates and Binance, one of the world’s largest crypto exchanges. WLF’s stablecoin, USD1—backed by U.S. dollars and government treasuries—was used by UAE-backed investment fund MGX for a $2 billion investment into Binance, increasing the stablecoin’s traction.
Reports indicate a complex relationship involving Binance’s role in the investment and stablecoin technology support, although Binance executives have denied direct involvement in MGX’s decisions.
Notably, on October 23, former President Trump granted a pardon to Binance founder Changpeng Zhao, who had pleaded guilty to enabling money laundering through the platform. Trump later stated he had no prior knowledge of Zhao despite granting the pardon.
Next Steps and Government Response
Senators Warren and Reed have asked the Department of Justice and Treasury to provide detailed information about any potential enforcement actions against World Liberty Financial by December 1. As of now, neither agency has responded publicly to requests for comment.
The inquiry highlights ongoing tensions around the regulation of emerging crypto assets, national security considerations, and the financial interests of high-profile individuals in the space.
For continuous updates on this investigation and broader crypto developments, follow CNBC Crypto World.