Sen. Blumenthal Slams Trump Family’s World Liberty Financial for Lack of Transparency in Cryptocurrency Investigation
Washington, Sen. Richard Blumenthal (D-CT) has slammed World Liberty Financial (WLFI), a decentralized finance company closely tied to former President Donald Trump’s family, for its “lackluster and incomplete” response to the Senate’s ongoing investigation.
Blumenthal, a senior member of the Senate’s Permanent Subcommittee on Investigations, said Friday that WLFI’s recent response “deliberately dodges core questions,” particularly regarding former President Trump’s financial ties to the company, which is under investigation for possible violations of ethics rules and the Constitution’s foreign emoluments clause.
“The lack of transparency on the part of World Liberty Financial raises concerns about the potential for foreign governments to influence, or even manipulate, the former President through investments in the company,” Blumenthal noted.
The investigation was announced just days after WLFI — a DeFi platform co-founded by Chase Herro, Zak Folkman, and members of the Trump family — announced a $2 billion deal backed by the government of the United Arab Emirates (UAE). The deal will be backed by WLFI’s own stablecoin, the USD1, in March.
Notably, just days earlier, WLFI also announced an official advisory role to the Pakistani government on cryptocurrency — a move that further raised concerns about potential conflicts of interest and national security implications.
“These cross-border transactions, which directly involve foreign governments, raise serious questions about the ethics and integrity of a former US President,” Blumenthal said.
An official response from WLFI lawyers – led by Teresa Goody Guillén – dismissed the Senate investigation as “flawed and riddled with inaccurate inferences.” However, the response did not provide any specific information about Mr. Trump’s ownership or details about recent international transactions.
Meanwhile, in the House, Democrats Gerald Connolly, Joseph Morelle and Jamie Raskin are also increasing pressure by sending a letter asking Treasury Secretary Scott Bessent to release suspicious activity reports (SARs) that may be related to World Liberty Financial and the project’s official token, $TRUMP.
“We need serious federal oversight to ensure that there is no political profiteering or personal enrichment from foreign governments,” the lawmakers’ letter reads in part.
As the controversy continues, the future of World Liberty Financial—and former President Trump’s role in global cryptocurrency activities—is being closely watched on Capitol Hill and in the international blockchain community.