Democratic Senators Elizabeth Warren (D-MA) and Jack Reed (D-RI) have formally requested that the Justice Department (DOJ) and the Treasury Department launch an investigation into World Liberty Financial (WLFI) following allegations that token sales from the crypto project involved wallets tied to sanctioned and high-risk entities.
The senators’ referral, outlined in a letter to Attorney General Merrick Garland and Treasury Secretary Janet Yellen, cited wallet-level claims published by the watchdog group Accountable US. These claims allege that WLFI token sales—which have reportedly raised over $550 million this year—involved Wallets linked to North Korea’s Lazarus Group, An Iran-linked exchange (Nobitex), A Russia-linked ruble token (A7A5), and Dozens of prior users of the sanctioned mixer Tornado Cash.
The request highlights a potential conflict of interest and national security risk due to the project’s reported ties to President Donald Trump’s business network.
WLFI’s public disclosures state that DT Marks DeFi LLC, a Trump-affiliated entity, and certain family members hold 22.5 billion WLFI tokens and are entitled to receive 75% of the net proceeds from token sales through a services agreement.
The senators argue that any sanctions exposure identified by the Treasury Department’s Office of Foreign Assets Control (OFAC) could directly implicate funds flowing into these Trump-linked entities.
The key issue for investigators will be whether WLFI’s claimed Know Your Customer (KYC) and Anti-Money Laundering (AML) controls were effective during the sales period. OFAC maintains a strict liability standard for civil sanctions, meaning companies can be penalized even if they unknowingly transact with blocked parties.
While the U.S. lifted sanctions on Tornado Cash in March 2025, activity involving the mixer during its previously sanctioned period, or dealings with still-blocked entities like North Korea’s Lazarus Group (implicated in the $1.5 billion Bybit hack), remain within OFAC’s purview.
