The world of cryptocurrency continues to challenge traditional financial systems, and as recent events unfold, significant concerns are arising about the implications of these digital assets on national security. A recent report has revealed troubling associations tied to a cryptocurrency project linked to former President Donald Trump.
In the latest findings, a government watchdog has scrutinized a token tied to Trump’s venture, highlighting sales to parties associated with governments deemed hostile, including those linked to Iran and North Korea.
Investigations Uncover Dubious Transactions
As per disclosures from Accountable.US, the company behind the WLFI token, World Liberty Financial Inc., has reportedly sold tokens to wallets that may be linked to high-risk entities. These connections include addresses associated with North Korean actors and individuals who have previously interacted with Tornado Cash, a service cited for facilitating money laundering activities.
Citing a variety of wallet examples and transaction data, the watchdog’s report uses the term “American Sell-Out”, a characterization that has been widely circulated by media outlets, underscoring the serious allegations within the report.
“Trump’s crypto empire is a vehicle for foreign actors to buy influence anonymously and without disclosure.”
Our executive director Tony Carrk emphasizes the risks Trump’s venture poses to American workers and investors. pic.twitter.com/8phS0blq41
— Accountable.US (@accountable_us) September 19, 2025
Additional reports indicate that some buyers of these tokens accessed foreign exchanges that are typically restricted for US users. This raises alarming questions regarding the potential foreign origin of certain holders or the use of methods to disguise their identities.
Implications for National Security
The patterns revealed in the investigation suggest that tokens associated with a prominent US political figure may function as channels for foreign influence or methods to bypass sanctions, warranting serious scrutiny from national security perspectives.
Analyzing wallet holdings, it appears that at least 14 of the largest wallets, collectively holding over 6.7 billion tokens with a significant monetary value, have engaged with platforms that are not permissible for US citizens, reinforcing fears that some holders may be situated abroad.
While the watchdog has not conclusively accused World Liberty of intentional wrongdoing, they have called for an official investigation into these transactions.
Documentation of the Trump family’s involvement indicates a sizable stake in this crypto venture, with reports suggesting ownership of approximately 22.5 billion WLFI tokens valued at around $5 billion at fluctuating market rates. Such significant holdings amplify demands for clarity regarding the initial sale of these coins and mechanisms for buyer vetting.
Market Reactions and Regulatory Oversight
The market has already shown signs of reaction amidst these developments. On its initial public trading day, WLFI’s price experienced a notable drop, reflecting mixed investor sentiment even prior to the watchdog’s revelations.
Ongoing trading volatility and discussions surrounding token management have ensured that WLFI remains a topic of interest as regulatory bodies and market participants closely observe the unfolding situation.
Featured image sourced from Meta, chart data from TradingView
