Overview
- In a letter sent Tuesday, Senators Elizabeth Warren and Jack Reed asked the Justice Department and Treasury to outline potential enforcement actions by Dec. 1.
- The senators cited Accountable.US findings that $WLFI tokens were sold to traders with on-chain ties to North Korea’s Lazarus Group, a sanctioned Russian ruble tool, an Iranian exchange, and Tornado Cash.
- $WLFI is a governance token that confers proposal and voting rights, which the lawmakers warned could give suspicious holders influence over the protocol.
- The letter says DT Marks DEFI LLC, an entity affiliated with President Trump and family members, holds 22.5 billion $WLFI and is entitled to 75% of token-sale proceeds, raising conflict-of-interest concerns.
- CNBC reported that World Liberty Financial, the DOJ, and Treasury had not commented, as scrutiny includes the firm’s planned products and a watchdog-flagged $10,000 January token sale tied to a wallet now sanctioned.