World Liberty Financial Responds to Senate Investigation on Stablecoin
According to the information, the investigation is based on flawed assumptions and lacks merit. The company has raised concerns about the fairness of Blumenthal’s inquiries.
Blumenthal’s Allegations Against Trump Ties
Blumenthal, a key figure in the Senate Permanent Subcommittee on Investigations, recently contacted WLF and Fight Fight Fight LLC—the company behind the Trump memecoin—alleging possible breaches of federal law. He suggests that the firms might be involved in unethical activities and foreign influence. The senator is particularly concerned about potential violations related to Trump’s financial gains from the companies, calling for detailed transparency about their financial structures.
World Liberty Financial has significant backing from the Trump family. President Trump and his sons have all been involved in promoting the DeFi project, with each taking on ambassadorial or advocacy roles. These connections have raised suspicions about conflicts of interest, which Blumenthal highlighted in his letters.
The Stablecoin Controversy
Blumenthal’s investigation also targets the USD1 stablecoin, created by WLF. The senator argues that the stablecoin could pose security risks, as it was used to secure a record $2 billion investment from MGX to close Binance’s deal. Additionally, he suggests that Trump’s involvement with WLF may encourage foreign governments and “unscrupulous” individuals to invest in ways that could compromise national security.
WLF’s Legal Response and Strategic Goals
In response, WLF’s attorneys, from the firm BakerHostetler, rejected the claims, stating that the company was under no legal obligation to respond to the probe. They defended the company’s role in supporting the U.S. dollar and clarified that USD1 is a fully reserved stablecoin backed by U.S. Treasuries and cash equivalents. The legal team emphasized that their goal is to enhance U.S. financial influence globally, not undermine it.
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Filed under: Bitcoin - @ May 16, 2025 8:01 pm