Democrats attack Trump’s World Liberty Financial for taking North Korean money — want DOJ probe

Democratic Senators Elizabeth Warren and Jack Reed have requested the Justice Department and Treasury Department investigate World Liberty Financial (WLFI) following allegations by the watchdog Accountable US that WLFI token sales involved wallets linked to North Korea’s Lazarus Group, a Russia-linked ruble token, an Iranian exchange, and Tornado Cash users. WLFI's structure is under scrutiny because its affiliated entity, Trump-affiliated DT Marks DeFi LLC, receives 75% of net token-sale proceeds, potentially routing sanctions exposure directly into former President Donald Trump’s business network. The senators' request focuses on national security risks, noting that even unintentional interactions with sanctioned parties can trigger civil penalties under OFAC's strict-liability standard. The investigation will likely examine WLFI's KYC/AML controls, the timing of buyer interactions relative to sanctions changes (like the lifting of Tornado Cash sanctions), and potential enforcement paths including OFAC civil action, DOJ criminal exposure, FinCEN pressure, or SEC review. The scale of potential exposure is estimated, with tainted flows possibly ranging from $3.25 million to $40 million of the total funds raised, which could translate to $2.4 million to $30 million at risk for the Trump-affiliated entity.

(Source：CryptoSlate)