Senator slams Trump-linked WLF over inadequate response to inquiry

Senator Richard Blumenthal has ripped into the Trump family-led crypto firm World Liberty Financial over its inadequate response to a Senate inquiry. Senator Blumenthal, who represents Connecticut, said the company gave a “seriously inadequate” response as investigation into its business continues.

According to reports, WLF sent a letter to him this week in response to a notice that the company is under investigation. The Senator mentioned that the inadequate response shows that the company is avoiding the fact that foreign governments and others can enrich themselves and compromise United States President Donald Trump through his affiliation with World Liberty Finance. He added that the company’s refusal to answer questions regarding the exposure of the president to financial entanglements raises serious questions.

Senator Blumenthal slams WLF over “inadequate” response

World Liberty Finance is a decentralized financial platform led by Zak Folkman, Chase Herro, the Trump Family, and the Witkoff family, who have close ties to the Trumps. The platform allows users to trade, lend, and borrow digital assets without intervention from third-party intermediaries such as banks. The project was launched in September, in the lead up to the United States presidential election, raising about $550 million in a token sale. In addition, the platform also issued its stablecoin in March.

Earlier this month, Senator Blumenthal, who is a permanent ranking member on the Senate’s Permanent Subcommittee on Investigations sent a letter for the decentralized firm’s leadership, informing them of a potential investigation over violation of government ethics requirements and other laws, including the foreign emoluments clause of the US constitution. This particular clause was created to prohibit federal officials from accepting salaries, fees, or profits from foreign governments without the consent of Congress.

The inquiry was opened days after World Liberty Finance, which is partly owned by the US President and his sons, announced a $2 billion deal with the UAE government and facilitated by World Liberty Finance’s new stablecoin USD1. Before then, the platform had also agreed to advise the Pakistani government on issues related to cryptocurrencies. “Historic day for @worldlibertyfi at our MOU signing ceremony in Pakistan today. We are looking forward to bringing diversity and financial inclusion to the next generation in Pakistan and beyond,” Zach Witkoff said on X in reaction to the update.

Blumenthal sounds alarm over national security risks

According to Blumenthal, businesses like those carried out by World Liberty Finance pose unprecedented conflicts of interest and national security. He also asked the company to submit key details to the Senate’s Investigations Subcommittee, including details regarding President Trump’s involvement in the firm’s operations. However, the Thursday response by WLF’s attorneys made the Senator furious, with the attorneys dismissing his queries which they claimed contained inaccuracies and fundamentally flawed inferences. In addition, he mentioned that he will continue to demand transparency for the American people.

“The Company has exercised rigorous diligence to ensure compliance with applicable legal and regulatory obligations at every stage,” World Liberty’s attorney, Teresa Goody Guillén, said. While the letter discussed the importance of World Liberty Finance’s mission of democratizing access to the financial system, it refused to address questions regarding the stake of President Trump in the company or a potential conflict of interest posed by its dealings with foreign governments. It also did not provide a direct response to any information that Blumenthal requested about the firm’s operations.

Inquiries into the Trump family’s crypto dealings are now on the rise across Capitol Hill, as Democrats are seizing the narrative. On Wednesday, Treasury Secretary Scott Bessent received a letter from House Democrats, which demanded access to any suspicious activity reports (SARs) his department may have filed in recent months regarding the president’s numerous crypto dealings. The letter was written by ranking members Representatives Gerald Connolly, Joseph Morelle, and Jamie Rakin, requesting information to investigate potential election fraud, corruption, and foreign influence.

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