Disclaimer: This article is a press release and Newsbit is not responsible for the content, accuracy or completeness of the information provided. This article does not constitute financial advice. Investing in cryptocurrencies or pre-sales involves significant risks, including the risk of losing your entire investment. Always do your own research before making any investment decisions.
The crypto world is turned upside down. Two US senators are demanding a criminal investigation into World Liberty Financial, the Trump family’s crypto company. The accusations? Tokens sold to entities with ties to North Korea, Russia and Iran. For many investors, this feels like a slap in the face, another celebrity crypto project under fire.
Senators demand investigation
Senators Elizabeth Warren and Jack Reed sent a letter to the Justice Department and the Treasury Department on Tuesday morning. Their message is crystal clear: World Liberty Financial may pose a national security threat and must be investigated.
The letter is addressed to Attorney General Pamela Bondi and Treasury Secretary Scott Bessent. The gist of the complaint? World Liberty Financial has sold its $WLFI governance tokens to “several highly suspicious entities,” according to a watchdog report from Accountable.US.
Who are these suspicious buyers? We’re talking about traders with blockchain connections to the infamous Lazarus Group, a North Korean team of hackers responsible for billions in crypto thefts. In addition, tokens were allegedly sold to a sanctioned Russian entity, an Iranian crypto exchange, and users of Tornado Cash, a platform notorious for money laundering.
For a company run by the family of the US president, these are explosive allegations.
Trump family makes 75% of all sales
Here’s where things get really interesting. DT Marks DEFI LLC, an entity linked to Donald Trump and family members, owns a whopping 22.5 billion $WLFI tokens. They are currently worth more than $3 billion. And the kicker: this entity is entitled to 75% of all revenues from the sale of $WLFI tokens.
Every time a governance token is sold, three-quarters goes directly to Trump and his family. The senators make it crystal clear: “That means that for every governance token sold, three-quarters of that money goes directly to the Trump family, even for sales to entities linked to North Korea and Russia.”
According to Accountable.US, approximately $11.6 billion, or 73% of Trump’s net worth, is tied to his crypto ventures. That includes the launch of his $TRUMP meme coin earlier this year. This is no longer a side issue, crypto has become Trump’s largest source of income.
World Liberty Financial denies everything
World Liberty Financial strongly denies all allegations. “There is no conflict of interest between World Liberty Financial, a private crypto company with zero political power, and the US government,” a spokesperson said.
The company claims to have conducted rigorous AML/KYC checks on every presale purchaser of the $WLFI governance token, which it claims is “the highest standard in the industry.” They even claim to have turned away millions of dollars from potential buyers who failed the tests.
But the question remains: How rigorous were those checks really if suspicious entities could still buy tokens?
The Liberty World Financial website lists Eric Trump, Donald Trump Jr. and Barron Trump listed as co-founders. Donald Trump himself is listed as “Co-Founder Emeritus”. The $WLFI governance tokens give holders the right to vote on company developments, which also potentially gives influence to dubious players.
What this means for politically inspired meme coins and crypto projects
This situation has broader implications for the entire Trump crypto ecosystem. In addition to World Liberty Financial, Trump also launched his own $TRUMP meme coin earlier this year, which was worth billions at its peak. As these accusations come out, the question becomes: How many of those projects are legitimate, and how many are simply cash machines for the Trump family?
The problematic thing about this crypto news is that it shows a pattern that we often see with celebrity-driven crypto projects. Big names attract investors with promises of revolutionary technology or unique benefits, but ultimately the business model turns out to be mainly about enriching the founders.
This is an extra hard lesson for meme coin investors. Politically inspired crypto projects are notoriously volatile and risky. They rise fast on sentiment and buzz, but can collapse just as quickly when sentiment turns. As is happening now with this crypto news surrounding possible scams.
Why investors should be careful
The core of the problem is that celebrity coins and political crypto projects often have no real use case. They exist purely on hype, name recognition and the promise that this time it will be different. But history teaches us otherwise.
Think of all the celebrity NFT projects that crashed. Think of influencer coins that lost 99% of their value. The pattern is always the same: big launch, huge hype, early investors cash out, late investors are left with worthless tokens.
There are several red flags to look out for in a crypto scam. First: promises of guaranteed profits. Second, non-transparent tokenomics where founders own a huge percentage. Third, lack of real technological innovation or use case. And fourth, as we see here, questionable connections and lack of transparency about who is buying.
World Liberty Financial checks several of these boxes. The Trump family owns 75% of the proceeds, the governance tokens give influence without it being clear who is buying, and now it appears that potentially hostile entities had access. That’s not a good sign.
Timing is alles
The senators emphasize that the timing of their request is essential. Congress is considering new crypto regulations that could shield governance tokens such as $WLFI from existing supervision. These new rules could even exempt issuers of such tokens from certain recordkeeping and disclosure obligations.
“As Congress considers legislation on the market structure for digital assets, we must ensure that crypto interests do not benefit at the expense of US national security and that rogue entities do not gain keys to financial platforms that they can later abuse,” the senators wrote.
Trump went from crypto critic to full crypto supporter during his first term. His administration is pushing several crypto-friendly bills, including the recently passed GENIUS Act. But these accusations cast a shadow over that entire transformation. Was it real conviction, or just a way to cash in?
Warren and Reed have asked the Treasury and Department of Justice to provide information by December 1 about possible enforcement actions against World Liberty Financial. Whether anything comes of this remains to be seen.
Best Wallet Token
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PepeNode
If you want to invest in memecoins, why not earn passive income while you do it? PepeNode ($PEPENODE) is an innovative project that combines node infrastructure with the virality of meme culture.
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PepeNode’s presale offers early investors access to increased staking rewards and bonus allocation. This isn’t a pump-and-dump scheme where founders claim 75% of the returns, this is a community-driven project with transparent tokenomics and a team that actually builds for the long term.
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Hyper
For traders frustrated by Bitcoin’s slow transactions, Bitcoin Hyper ($HYPER) is the solution. This layer-2 protocol brings lightning-fast transactions to Bitcoin, allowing you to finally trade without waiting endlessly for confirmations.
Bitcoin Hyper solves one of Bitcoin’s biggest problems: scalability. By using L2 technology, thousands of transactions can be processed per second, while maintaining Bitcoin mainnet security. That means you can swap, stake and trade with the speed of modern blockchains, but with the reliability of Bitcoin.
The $HYPER presale is now live and gives early adopters access to governance rights, and fee-sharing mechanisms. Unlike World Liberty Financial, where it is unclear who owns what and where money goes, Hyper is completely transparent with on-chain verification of all transactions and token distribution.
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Disclaimer: This article is a press release and Newsbit is not responsible for the content, accuracy or completeness of the information provided. This article does not constitute financial advice. Investing in cryptocurrencies or pre-sales involves significant risks, including the risk of losing your entire investment. Always do your own research before making any investment decisions.
Source: https://newsbit.nl/trump-aangeklaagd-voor-scam-bescherm-je-crypto-met-best-wallet/
