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World Liberty Financial (WLFI), issuer USD1 Stablecoin, publicly rejected The Senate probe into its operations and refuses to investigate as a politically motivated and lacking substance.
The public reaction came shortly after Senator Richard Blumenthal (D-CT), the ranking of the permanent Senate Subcommittee on Investigation (Dogs), revealed that his office was running Preliminary investigation of political connections of WLFI and sources of foreign investment 6 May.
Senator Richard Blumenthal (D-C) is "searching for answers" In a new question about US President Donald Trump Crypto Ventures.#Richardblumenthal #Donaldtrumphttps://t.co/x820khp6sysy
– Cryptonews.com (@cryptonews) May 7, 2025
The Senator raised alarms over the administration and impact of national security and potential financial entanglement, especially his links to President Donald Trump.
In a formal letter, Blumenthal asked extensive documentation from both WLFI and Fight Fight Fight LLC, the company for the official Trump Meme Coin (Trump).
The letter claims that these entities could violate federal ethical law by facilitating financial transactions concerning foreigners who face the prosecution or creating a potential conflict of interests concerning Trump.
He also accuses WLFI and Trump of the provision of considerable financial benefits to Trump and his collaborators.
Senators Elizabeth Warren and Jeff Merley demand an urgent ethical probe into a trump-cited stablecoin agreement including SAE, binance and $ 2 billion in the crypt.#Trump #UsseNenehttps://t.co/mpfeed54eu
– Cryptonews.com (@cryptonews) 6 May 2025
The probe follows the wider call of senators Elizabeth Warren and Jeff Merley who previously demanded Ethical investigation What they called the “stunning conflict of interest” concerned WLFI, USD1 and reported foreign investments of $ 2 billion directed through binance.
Inside USD1 Stablecoin: Claims on transparency and financial integration
In a letter issued through the law firm Bakerhostetler WLFI, she rejected the accusation and reaffirmed her obligation to financial transparency and compliance with the US regulations.
“World Liberty Financial does not work in the shade,” lawyers wrote. “Building a transparent and compatible financial system rooted in American trust, law and leadership, with values such as the responsibility and dominance of the dollar that drives every step.”
The company emphasized that its flag product, USD1, is a fully reserved, dollar supported by Stablecoin, which is provided by short -term US treasures and cash equivalents.
The WLFI insists that its mission is to increase global demand for debt instruments in the US and expand the access of the dollar to insufficiently operated regions around the world.
“The company refuses to make a false choice between innovations and supervision,” the letter continued. “There is abuse of regulatory authority and uncertainty to suppress legal innovation. The future of finances must be shaped in Washington, DC – not in Beijing, Moscow or at the closed doors of old institutions resistant to serve customers around the world.”
Bakerhosteter’s lawyers have closed WLFi framing as part of a wider movement to maintain US money line in the digital era.
Blumenthal also sent a separate letter to Bill Zanker, the CEO of Fight Fight Fight LLC, challenging the company’s behavior at the opening of the Trump Meme coin and raised concerns about “” “Dinner with Trump ”promotion.
The senator speculated that a small group of initiated the project can very much benefit from the project. From now on, Fight Fight Fight LLC has not responded to the accusation.
In response that WLFI lawyers categorically denied any association to Fight Fight Fight LLC or Zanker. The “unwavering statement of a non -existent relationship” was one of the factual mistakes in Blumenthal’s letter, they said.
Political crypto, foreign investors and regulatory intersection
The WLFI probe indicates the growing tension between politics and digital assets because the high -ranking numbers deepen their involvement in the crypto.
President Donald Trump himself has previously promoted digital assets, including the controversial coins of $ Trump Meme, while criticizing the Central Bank’s digital currencies (CBDC).
WLFI contributes to complexity and has gained considerable support from foreign investors. Chinese entrepreneur Justin Sun reportedly committed $ 30 million for the project A serve as an advisor to the company.
The company is also associated with capital resources in Abu Dhabi. These connections were concerned about the potential foreign impact on a financial instrument based in the US.
At the beginning of this month, the House Democrats began a parallel investigation of the deepening involvement of Trump in the crypt sector.
In the letter of May 14, representatives of Gerald Connolly, Joseph Morelle and Jamie Raskin called for Minister of Finance Scott Bessnt to release All reports of suspicious activity (SARS) submitted since 2023 concerning entities attached to TrumpIncluding WLFI and official Trump Token.
Democratic legislators launched a new probe in the growing involvement of former President Donald Trump in the cryptoviště.#Crypto #Ordinancehttps://t.co/wli5qqlndu
– Cryptonews.com (@cryptonews) May 15, 2025
Democrats of the Senate introduced in response to growing concerns Act on modern enjoyment and law on enforcement (MEME) 6th May.
– Cryptonews.com (@cryptonews) 27 February 2025
The bill designed by Senator Chris Murphy seeks to prevent federal officials, including the President, Vice President, Congress members and their families, to create, promote or financially benefit from digital assets, including cryptocurrencies, securities and tokenized commodities.
Contribution WLFI Slams Senate Senate USD1 Stablecoin question because Trump connects alarm National Security He appeared for the first time Cryptonews.
