Senators call for investigation into World Liberty Financial

New data indicates that $WLFI tokens were sold to potentially suspicious parties, including addresses associated with North Korea and Russia.

In the letter, obtained exclusively by CNBC, the senators warn that the firm may pose national security risks. They argue that the platform lacks adequate safeguards to prevent bad actors from using the tokens to influence protocol governance or transfer funds illicitly.

As key evidence, the senators cite a September report by the nonprofit Accountable.US, which claims that World Liberty Financial sold $10,000 worth of $WLFI to trading addresses previously linked to a wallet sanctioned by the U.S. for ties to North Korea’s Lazarus Group. The report also mentions addresses associated with Russian entities accused of using crypto to evade sanctions.

World Liberty Financial was founded by Eric Trump, Donald Trump Jr., and Barron Trump. Donald Trump is listed on the company’s website as “Co-Founder Emeritus.” An entity connected to the Trump family holds 22.5 billion $WLFI tokens valued at more than $3 billion and is entitled to 75% of the proceeds from token sales.

According to the senators, this structure creates a potential conflict of interest, as revenue from token sales directly benefits the Trump family. The letter warns that tokenized governance could allow hostile foreign actors to gain influence if tokens are acquired by overseas players.

The senators also note that World Liberty Financial has recently expanded its offerings, including a debit card and tokenized merchandise, arguing that this makes strict sanctions compliance oversight even more urgent.

The letter requests that the Treasury and Justice Department provide details by December 1 on any potential enforcement actions involving the company. Representatives for World Liberty Financial and the Justice Department did not respond to CNBC’s request for comment.