WLFI may be under investigation! Trump's encryption company is accused of facilitating money laundering activities for North Korea and Russia.

Democratic senators urged the Department of Justice and the Department of the Treasury to investigate the situation regarding World Liberty Financial (WLFI) and its alleged connections to illegal actors in North Korea and Russia related to Trump. According to a report by the nonprofit watchdog Accountable.US, WLFI sold tokens to dozens of suspicious buyers, who interacted with large money laundering platforms, Iranian crypto exchanges, and even North Korean hackers.

WLFI is accused by Democratic lawmakers, Trump-related companies involved in Money Laundering

(Source: CNBC)

According to an exclusive report by CNBC on November 18, Senators Elizabeth Warren (D-Massachusetts) and Jack Reed (D-Rhode Island) sent a letter on November 12 to Attorney General Pam Bondi and Treasury Secretary Scott Bensen, urging them to launch a formal investigation into WLFI. This letter marks the latest escalation by Democrats in the scrutiny of Trump's Crypto Assets empire.

Warren has been one of the strongest voices in Congress for cryptocurrency regulation, and she has long expressed concerns about the lack of regulation in the digital asset industry. As a senior member of the Senate Armed Services Committee, Reed is particularly sensitive to issues related to the flow of foreign funds that involve national security. The collaboration of these two senators indicates that this investigation request involves not only financial regulation but also touches on national security aspects.

The two senators cited a report released by the nonprofit oversight organization Accountable.US in September 2025, which claims that “the Trump family's cryptocurrency company sold tokens to dozens of suspicious buyers who interacted with a large money laundering platform, an Iranian cryptocurrency exchange, and even North Korean hackers.” If these allegations are true, they would constitute serious violations of U.S. sanctions laws and anti-money laundering regulations.

The report from Accountable.US raises a fundamental question: “Ultimately, the question remains—why does the Trump family's Crypto Assets company accept funds from individuals with open and obvious connections to America's enemies, as well as from networks that help these enemies and other criminals launder billions of dollars?” This question directly points to WLFI's due diligence process and compliance.

However, World Liberty Financial firmly denies any conflicts of interest or misconduct mentioned in the CNBC report. A WLFI spokesperson stated that the company strictly adheres to all applicable anti-money laundering (AML) and know your customer (KYC) regulations, and conducts thorough compliance reviews on all transactions. Critics, however, point out that the anonymity and decentralized nature of blockchain make it extremely difficult to fully trace the source of funds.

Details of the accusations against North Korean hackers and Money Laundering networks

The report from Accountable.US reveals potential links between WLFI and several suspicious entities, the most shocking being its association with North Korean hacker groups. North Korea has long exploited Crypto Assets to steal and launder money to circumvent international sanctions, financing its nuclear and missile programs. According to reports from the United Nations and U.S. intelligence agencies, North Korean hacker groups such as the Lazarus Group have stolen billions of dollars from global cryptocurrency exchanges.

The report points out that certain wallet addresses that purchased WLFI Tokens have previously had transactions with known Money Laundering platforms. These platforms typically use mixers or privacy coins to obscure the source of funds, making tracking extremely difficult. Although the report does not directly claim that WLFI intentionally collaborated with North Korean hackers, it questions whether its due diligence processes are strict enough to identify and prevent these suspicious transactions.

The Core Content of the Accountable.US Report Allegations

North Korean Hacker Association: Some wallet addresses that purchased WLFI Tokens have transaction records with known money laundering networks used by North Korean hacker organizations.

Iran Exchange Contact: Some buyers have conducted transactions at Iranian cryptocurrency exchanges that are under U.S. sanctions.

Large Money Laundering Platform: Dozens of buyers interact with mixing services and privacy protocols that handle billions of dollars in illegal funds.

Due Diligence Concerns: Are WLFI's KYC and AML procedures stringent enough to identify these high-risk clients?

The seriousness of these allegations lies in the fact that if WLFI indeed accepted funds from these sources, even inadvertently, it could potentially violate the U.S. International Emergency Economic Powers Act (IEEPA), the Patriot Act, and various executive orders targeting North Korea, Iran, and Russia. These violations could result in hefty fines, criminal prosecution, and even closure of the company.

From a technical perspective, the transparency of blockchain means that all transactions are publicly traceable, but the anonymity makes it difficult to link wallet addresses with real identities. Professional on-chain analysis companies like Chainalysis and Elliptic can track fund flows through complex algorithms, identifying addresses associated with illegal activities. The report from Accountable.US likely relies on similar analytical tools.

The Role of the Trump Family in WLFI Raises Conflicts of Interest

During his campaign, U.S. President Trump strongly advocated for establishing a regulatory framework friendly to Crypto Assets, but on the website of World Liberty Financial, he is praised as “Honorary Retired Co-founder.” This dual identity—being a president who promotes friendly policies towards Crypto Assets and a founder of a Crypto Assets company—has sparked an unprecedented controversy over conflicts of interest.

His son Donald Jr. and Eric were awarded the title of “Web3 Ambassadors” for the encryption platform, while Barron serves as its “DeFi Visionary.” This familial depth of involvement blurs the lines between WLFI and the Trump administration. Critics point out that when the presidential family directly profits from the Crypto Assets industry, it becomes difficult to ensure that government policies are made for the public good rather than private interests.

The Trump administration has taken a series of extremely friendly policy measures towards Crypto Assets. On inauguration day, SEC Chairman Gary Gensler resigned and was replaced by cryptocurrency advocate Paul Atkins. Subsequently, the SEC has either dismissed or settled cases with several crypto companies. Trump also signed an order allowing Americans to invest their retirement savings in crypto assets and established a national Bitcoin reserve.

These policy changes directly benefit the entire Crypto Assets industry, including WLFI. For example, the establishment of a regulatory framework for stablecoins provides legal certainty for WLFI's USD1 stablecoin. Regulations restricting mainstream banks' participation in Crypto Assets have been lifted, making it easier for institutional funds to flow into the crypto market. The Department of Justice's directive to reduce investigations into crypto companies has also lowered the risk of WLFI facing enforcement actions.

Warren continues to scrutinize Trump's crypto business

At the same time, Warren has been openly opposing Trump and his connections with the entire digital asset industry. This is not her first action against WLFI. In June, Warren and another senator, Jeff Merkley (Democrat from Oregon), sent a letter to the CEOs of MGX and Binance, requesting both companies to preserve and provide communication records related to their use of World Liberty Financial's USD1.

The senator wrote in the letter: “In order to help us better understand the extent to which President Trump’s economic interests in USD1 have influenced your company’s decision to use this stablecoin rather than other payment methods unrelated to the U.S. President, we request more information and documentation regarding this investment from MGX and Binance.” The core of this letter questions whether foreign companies choose to use USD1 because of Trump’s presidential status, and whether this constitutes an improper influence on U.S. policy.

It is currently unclear whether Warren's latest efforts to investigate World Liberty Financial's business dealings will be successful. Whether the Department of Justice and the Department of Treasury will respond to the senator's inquiry depends on multiple political and legal factors. The attorneys general appointed by Trump might be less inclined to investigate the president's family's businesses, but under pressure from Congress and public scrutiny, they may also be forced to take some action.