Senator Criticizes Trump's World Liberty Financial for Insufficient Response to Inquiry

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The Skewering of World Liberty Financial

Senator Richard Blumenthal (D-CT), in a blunt critique, took aim at the crypto firm, World Liberty Financial (WLFI), on Friday. Blumenthal slammed the company, affiliated with the Trump family, for its alleged evasiveness in responding to Senate inquiries on their business dealings.

"WLFI's dull response deceptively camouflages the simple reality: foreign governments and others can pad the wallets of President Trump through WLFI," Blumenthal bluntly stated in a statement sent to Decrypt. This statement followed a letter sent to Blumenthal by WLFI earlier in the week.

"The recalcitrance of WLFI in answering even the most basic questions about President Trump's financial ties with the company raises eyebrow-raising questions," the senator further stated. "I will persistently demand accountability for the American people."

WLFI, steered by Chase Herro, Zak Folkman, the Trump family, and the Witkoff family, who share close ties with the Trumps, is a decentralized finance (DeFi) project. This kind of project empowers crypto asset trading, lending, and borrowing, bypassing conventional third-party intermediaries like banks. WLFI, established in September before the U.S. presidential election, pumped in a massive $550 million in a token sale and issued its own stablecoin in March.

Mere days ago, Blumenthal, the ranking member of the Senate's Permanent Subcommittee on Investigations, dispatched a letter to WLFI's leadership, informing the decentralized finance company of an investigation into potential breaches of government ethics regulations and other laws, including the foreign emoluments clause of the U.S. Constitution. The clause prevents federal officials from receiving payments, fees, or assets from foreign governments without Congress' endorsement.

This investigation emerged shortly after WLFI, echoing President Trump and his sons, announced a breathtaking $2 billion deal backed by the UAE government, accelerated by WLFI's new stablecoin, USD1. Prior to that, the firm had declared it would counsel the Pakistani government on crypto-related matters.

Blumenthal is concerned about the unprecedented conflicts of interest and security threats posed by such business dealings and has requested key information from WLFI, such as details concerning President Trump's role in the company's operations.

On Thursday, WLFI's legal team replied to Blumenthal's inquiries, dismissing them as misleading due to inherent errors and faulty assumptions. "WLFI has meticulously ensured compliance with the legal and regulatory landscape at each juncture," stated WLFI's attorney, Teresa Goody Guillén.

However, the response notably omitted specifics regarding President Trump's interest in the company and potential conflicts of interest arising from WLFI's dealings with foreign governments. It also declined to deliver the information sought by Blumenthal about the operations of WLFI.

Investigations into the Trump family's crypto-oriented dealings are piling up on Capitol Hill as Democrats seize on the narrative. On Wednesday, House Democrats penned a letter to Treasury Secretary Janet Yellen, requesting access to any Suspicious Activity Reports (SARs) the department may have submitted recently regarding the president's numerous crypto endeavors.

Senator Blumenthal's criticism extended to World Liberty Financial (WLFI), a decentralized finance (DeFi) project that issues its own stablecoin and raised $550 million through an initial coin offering (ICO).
WLFI, managed by several high-profile figures including the Trump family, engages in crypto asset trading, lending, and borrowing without reliance on conventional banks.
Blumenthal, who heads the Senate's Permanent Subcommittee on Investigations, is investigating WLFI for potential breaches of government ethics regulations and laws, such as the foreign emoluments clause.
This investigation follows WLFI's announcement of a $2 billion deal backed by the UAE government and their declaration to advise the Pakistani government on crypto matters.
Despite WLFI's claim of compliance with legal and regulatory landscapes, Blumenthal's inquiries were met with a response that omitted specifics about President Trump's role in the company and potential conflicts of interest.
The general news is abuzz with investigations into the Trump family's crypto-related dealings, as Democrats are seizing on this narrative, with House Democrats recently requesting access to any Suspicious Activity Reports (SARs) related to the president's crypto endeavors.