SEC Investigates Cryptocurrency Project Linked to Trump Family Amid Allegations

Senator Elizabeth Warren has formally requested the Securities and Exchange Commission (SEC) to investigate World Liberty Financial, a cryptocurrency project linked to President Donald Trump's family. The request comes amid allegations of irregularities in token management and protection of retail investors.

The investigation was sparked by reports of a $75 million loan using WLFI tokens as collateral. According to market data, the firm obtained this credit using 5 billion WLFI tokens, which are theoretically valued at $440 million.

The transaction included $65.4 million in the project's own stablecoin, USD1, and 10.3 million in USDC. Reports indicate that Corey Caplan, Head of Technology at World Liberty Financial, also holds executive roles at Dolomite, raising questions about potential conflicts of interest.