Elizabeth Warren Calls for SEC Probe Into Trump-Linked World Liberty Financial and WLFI Token Loan

Warren asks SEC to review World Liberty Financial

U.S. Senator Elizabeth Warren has urged the U.S. Securities and Exchange Commission (SEC) to open an investigation into World Liberty Financial (WLF), a crypto project linked to the Trump family, citing concerns about investor treatment, token sales, and a controversial $75 million loan backed by the project’s own tokens.

The request arrives as Washington debates sweeping digital-asset legislation through the proposed CLARITY Act, placing additional attention on how crypto ventures are marketed, structured, and financed in the United States.

Letter to SEC Chair Paul Atkins details investor and securities concerns

In a letter dated May 14, Warren asked SEC Chair Paul Atkins to examine whether World Liberty Financial may have misled investors or potentially violated securities laws in connection with its WLFI governance token.

Warren pointed to reports claiming that Trump family-affiliated entities are entitled to receive 75% of token sale proceeds after expenses, while individuals who purchased WLFI tokens were subject to strict lock-up rules that reportedly prevented them from selling their holdings.

According to the senator’s letter, media reports indicate the project raised nearly $715 million through token sales. Warren also referenced claims that the Trump family has generated more than $1 billion in crypto-related wealth tied to the venture.

Warren argued that these allegations underscore the need for stronger investor safeguards as lawmakers consider broader rules that could reshape U.S. crypto market oversight.

Reported $75 million crypto-backed loan tied to WLFI tokens

A central issue raised in the letter is a reported financing transaction involving WLFI as collateral. Warren cited allegations that World Liberty Financial used approximately $440 million worth of WLFI tokens to secure a $75 million loan through Dolomite, described as a decentralized lending platform.

The transaction reportedly enabled WLF to withdraw about $65.4 million in its own USD1 stablecoin, along with an additional $10.3 million in USDC.

Warren’s concerns intensified due to the timing: the senator noted that while the project was allegedly able to execute the loan and related withdrawals, regular investors were still reportedly unable to sell WLFI because of existing lock-up restrictions.

Following the reported transaction, WLFI was said to have declined by nearly 10%, falling to a record low, according to the same set of reports cited by Warren.

CLARITY Act debate intersects with political scrutiny of crypto projects

Warren’s call for an SEC review comes as lawmakers consider the CLARITY Act, described as one of the largest proposed crypto regulatory efforts in U.S. history. During a markup session for the bill, Warren introduced amendments aimed at addressing Trump family involvement in crypto markets. Those proposals were later defeated along party lines.

The senator’s letter also highlighted the scale of the family’s reported stake in the project. Donald Trump and his family are said to hold roughly 22.5 billion WLFI tokens through DT Marks DEFI LLC, making the token a significant component of their growing crypto-related wealth, based on the information referenced.

Warren requests SEC response by May 26

Warren has asked the SEC to provide formal responses to her questions by May 26, signaling continued pressure on regulators to assess the project’s token structure, investor restrictions, and the reported crypto-collateralized borrowing activity.

The request reflects broader tensions in U.S. crypto policy discussions, where lawmakers are weighing market-structure rules and investor protections while high-profile political ties to digital asset projects draw increasing scrutiny.