Senator Elizabeth Warren asked the SEC to examine World Liberty Financial after reports that it used WLFI tokens as collateral for a loan while investors remained locked in, raising investor-protection and securities-law concerns.
Senator Elizabeth Warren asked SEC Chair Paul Atkins on May 14 to investigate World Liberty Financial, the crypto project tied to President Donald Trump and his family, over reports that it used about $440 million worth of its own WLFI governance tokens as collateral for a loan through Dolomite. According to the report, the transaction generated about $65 million in the project’s USD1 stablecoin and another $10 million in USDC while regular WLFI investors were still unable to sell their tokens. Warren said the SEC should examine whether investors were misled or whether securities laws tied to the WLFI token were violated, and she set a May 26 response deadline. The report also says Trump-affiliated entities could receive 75% of WLFI token sale proceeds after expenses, that World Liberty Financial has raised nearly $715 million through token sales, and that the Trump family’s crypto-linked wealth connected to the project has reportedly exceeded $1 billion. The letter adds pressure on the SEC as Congress debates digital asset legislation including the proposed CLARITY Act.