World Liberty Financial, linked to Trump family, faces investigation by Senators Warren and Reed due to alleged ties to sanctioned actors in North Korea and Russia. The company sold tokens to entities connected to Lazarus Group, Iran, and more, raising concerns over national security risks. World Liberty Financial denies allegations.

Senators Warren and Reed point out that Trump family controls 75% of WLFI token revenue, creating a financial conflict of interest. The company’s rapid expansion into debit cards and tokenized commodities, combined with weak compliance controls, could fuel illicit finance activity. Regulatory pressure on World Liberty Financial has been increasing.

Blockchain researcher Nick Bax casts doubt on allegations of North Korea-linked wallet investing in WLFI, suggesting false positives. Transactions labeled as “Lazarus-linked” were traced to a memecoin contract, not actual interactions with sanctioned entities. An independent user’s tokens were frozen due to false accusations, causing financial harm.

Read more at Cointelegraph: Senators Call for Probe Into Trump-Linked Crypto Firm Over Security Risks