Overview
- Sens. Elizabeth Warren and Jack Reed asked federal agencies to investigate World Liberty Financial over alleged sales of $WLFI governance tokens to wallets with ties to North Korea, Russia, Iran and Tornado Cash.
- Their letter cites Accountable.US findings, including a reported January sale of roughly $10,000 in tokens to traders linked on-chain to a Lazarus Group–associated wallet, and questions the firm's sanctions and AML controls.
- WLFI disclosed that some user wallets were compromised before launch through phishing and third‑party lapses, then froze affected wallets, required re‑KYC, and built new smart‑contract logic to manage recoveries.
- On Nov. 19, the company executed an emergency burn‑and‑reallocate of about 166.667 million $WLFI (≈$22.14 million) from compromised wallets to verified recovery addresses, with unverified wallets remaining frozen.
- WLFI and Trump representatives deny misconduct and highlight compliance checks, while some blockchain security experts dispute parts of the watchdog’s attribution; scrutiny also focuses on DT Marks DEFI LLC’s 22.5 billion‑token stake and 75% share of sale proceeds as Congress debates governance‑token rules.