Cryptocurrencies

Dem senators' accusation: 'Trump company sells tokens to buyers from North Korea, Iran and Russia'

At the centre of the letter sent by two democrats, World Liberty Financial, a crypto company owned by the US president's family

Eric e Barron Trump. (AP)

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

The ease with which the Trump family does business around the world is now well known. The predilection for cryptocurrencies of funds and companies linked to the American president as well (in the first six months of 2025, Donald Trump earned a billion dollars between bitcoins, memecoins, tokens and investments from foreign funds). It was only a few days ago that news broke of the agreement between the Trump Organisation and the Saudi Arabian Dar Global for a resort in the Maldives - 80 extra-luxury villas - to be financed with blockchain technology. But if doing business with the Saudis is a matter of opportunity (even if there is always a conflict of interest), it is a very different story if Russia and North Korea are on the other side. This is what two US senators, Elizabeth Warren and Jack Reed, claim, calling for an investigation into a crypto company, the Trump family's World Liberty Financial (the two co-founders are Eric and Barron Trump, sons of the president who is listed as co-founder emeritus) for alleged links to illicit buyers in North Korea, Russia, Iran. This was reported by the CNBC website.

In a letter sent on 18 November, Senator Warren of Massachusetts and Senator Reed of Rhode Island, both Democrats and minority members of the Senate Committee on Banking, Housing, and Urban Affairs, expressed concern that World Liberty Financial, a cryptocurrency company owned and operated by the Trump family, may pose a national security risk.

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The letter, obtained exclusively by CNBC and addressed to Justice Secretary Pamela Bondi and Treasury Secretary Scott Bessent, alleges that World Liberty Financial does not have adequate safeguards in place to prevent wrongdoers from moving funds or gaining influence over its governance. The two senators cited a September report by a non-profit monitoring body called Accountable.US, which claimed that World Liberty Financial had sold its $WLFI tokens to 'various highly suspect entities'.

These entities include traders with links on the blockchain to Lazarus Group, a notorious North Korean hacker organisation, a 'sanctions-avoidance tool financed with Russian rubles', an Iranian cryptocurrency exchange, and Tornado Cash, a notorious money-laundering platform, according to the watchdog.

World Liberty Financial denied any charges, as well as conflicts of interest 'between a private crypto company that has no political power and the US government' and assured that it conducts numerous anti-money laundering and identity checks on buyers before sales. However, the Accountable.US investigation, mentioned in the two senators' letter, questioned the identity of the token holders. The group's report found that World Liberty Financial sold $10,000 worth of $WLFI tokens in January to traders who had transacted with a wallet now sanctioned for association with the North Korean hacker group Lazarus.

By selling the tokens, World Liberty Financial took money from people with 'open and obvious connections to enemies of the United States' and increased national security risks by giving them 'a seat at the table' to influence the governance of the company, the senators said in their letter.

Senators Warren and Reed warn that the sales of tokens to ill-intentioned individuals "indicate the absence of robust anti-money laundering controls" and that "WLF risks supercharging illicit financial activities". They add that "the Trump family's close ties to the company also create a financial conflict of interest for Trump administration officials reporting to the President: prioritising token sales will directly enrich the Trump family, while compliance activities could interfere with this wealth creation." Warren and Reed do not mince words, and denounce that "every time a governance token is sold, three-quarters of that money goes directly to President Trump and his family, including through sales to entities linked to Russia and North Korea."

The Democratic senators make it clear that they sent the letter just now because Congress is considering new cryptocurrency regulation that could protect governance tokens like $WLFI from current US scrutiny and exempt issuers of such tokens from certain record keeping and disclosure requirements.

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