Senator Criticizes World Liberty Financial's Response to Inquiry Regarded as Insufficient by Trump
Headline: Trump's Crypto Empire Under the Microscope: Senator Blumenthal's Investigation
Hold on to your crypto wallets, folks! Sen. Richard Blumenthal (D-CT) has unleashed his furious rampage against the Trump family's cryptocurrency firm, World Liberty Financial (WLFI), accusing the company of a "seriously inadequate" response to a Senate inquiry.
Blumenthal's bones to pick? WLFI's crafty evasion of the fact that foreign governments and other nefarious entities can line Donald's pockets while in the White House through WLFI. Oopsie!
"This cowardly response cleverly conceals the truth that foreign governments and others can enrich and compromise the POTUS via WLFI," Blumenthal fumed in a recent statement.
But that's not all. WLFI has been hesitant to shed light on Trump's financial connections to the crypto firm, raising eyebrows and suspicions regarding shady business dealings and unprecedented conflicts of interest.
"WLFI's refusal to answer even the simplest of questions about President Trump's cozy financial relationship with the company has raised serious concerns," Blumenthal added. "And I'll keep pushing for Americans to get the transparency they deserve."
So, what's WLFI all about? It's a so-called Decentralized Finance (DeFi) project that allows for the trading, lending, and borrowing of crypto assets without pesky third-party intermediaries like banks. Launched during the final stretch of the U.S. presidential election in September, the project brought in a whopping $550 million in a token sale and launched its own stablecoin in March.
Earlier this month, Blumenthal dropped a letter on WLFI's leadership, letting the company know it was now under investigation over potential violations of government ethics requirements and other laws, such as the foreign emoluments clause of the U.S. Constitution. That clause bans federal officials from accepting payments from foreign governments without Congress' consent.
The investigation's timing couldn't be more perfect, as WLFI announced a $2 billion deal backed by the Emirati government just days earlier and agreed to advise the Pakistani government on crypto-related matters prior.
Blumenthal sees these business dealings as a double-edged sword, posing "unprecedented conflicts of interest and national security risks." He even got cheeky, asking the company to fork over key information to the Senate's Investigations Subcommittee, like details about Trump's role in WLFI's operations.
On Thursday, WLFI's legal team responded to Blumenthal's inquiry, calling his assertions "inaccurate" and "fundamentally flawed." But they did not tackle questions about Trump's ownership stake or potential conflicts of interest with foreign governments. Like the cat that stole the cream, WLFI slipped away without providing any of the information Blumenthal craved.
But Blumenthal ain't the only one cracking the cryptocurrency whip. House Democrats are on a witch hunt too! On Wednesday, they fired off a letter to Treasury Secretary Scott Bessent, demanding access to any suspicious activity reports (SARs) on Trump's cryptocurrency endeavors. Guess they want to know if he's really got the keys to the crypto kingdom.
Stay tuned, because this crypto cryptid is far from extinction. The investigation continues, and we can only hold our breath and hope for some exposure of Trump's dirty crypto laundry. Because nothing makes a story more sultry than a man in a cape, wearin' a mask, and crusadin' for truth – or somethin' like that.
Daily Debrief Newsletter
Enrichment Data:World Liberty Financial Inc. (WLFI), a cryptocurrency firm with ties to President Donald Trump and his family, is currently under investigation for multiple concerns, including potential ethics violations, foreign infiltration, and conflicts of interest.
The Senate Permanent Subcommittee on Investigations, led by Sen. Blumenthal, has initiated an inquiry into WLFI and the TRUMP cryptocurrency, as well as affiliate companies such as Fight Fight Fight LLC. The investigation focuses on issues such as the firm's dealings with foreign nationals under federal prosecution, accepting investments from foreign governments, and the constitutional ban on gifts and payments from foreign governments to the President. Additionally, there are concerns about the President's financial gains from the TRUMP cryptocurrency, potential conflicts of interest, and a lack of enforcement and transparency in cryptocurrency regulations.
Critics argue that President Trump's alleged disregard for enforcement actions against cryptocurrency companies and pardons related to crypto-related prosecutions raise further questions about self-dealing and regulatory capture. There is also scrutiny around cryptocurrency industry donations, which could exacerbate conflicts of interest due to millions of dollars contributed to the President's inauguration fund by WLFI business partners and affiliates.
WLFI has defended itself, stating that it is building a transparent financial infrastructure rooted in trust, American rules, and economic leadership. The company's lead attorneys have criticized Blumenthal's allegations, while refusing to address questions regarding Trump's ownership stake and potential conflicts of interest with foreign governments. The ongoing investigation seeks detailed disclosures about WLFI's ownership, investment structures, and governance to determine whether any laws or ethics rules have been violated.
- World Liberty Financial Inc. (WLFI), a Decentralized Finance (DeFi) project linked to President Donald Trump, is under investigation by the Senate Permanent Subcommittee on Investigations.
- The investigation involves potential ethics violations, foreign infiltration, and conflicts of interest regarding WLFI and its affiliated companies, such as Fight Fight Fight LLC.
- The inquiry focuses on WLFI's dealings with foreign nationals under federal prosecution, foreign government investments, and the foreign emoluments clause of the U.S. Constitution, which bans federal officials from accepting payments from foreign governments without Congress' consent.
- Critics question President Trump's financial gains from the TRUMP cryptocurrency, potential conflicts of interest, and regulatory capture due to his alleged disregard for cryptocurrency enforcement actions and related pardons.
- House Democrats have also requested access to any suspicious activity reports (SARs) on Trump's cryptocurrency endeavors, seeking information about potential conflicts of interest and self-dealing.
- The investigation sheds light on the lack of enforcement and transparency in cryptocurrency regulations, as well as the scrutiny surrounding industry donations to the President's inauguration fund.
- WLFI's defense includes building a transparent financial infrastructure rooted in American rules and economic leadership, while the company's lead attorneys have criticized the allegations but refused to address questions about Trump's ownership and potential conflicts of interest with foreign governments.
