Elizabeth Warren is pushing for a new SEC investigation into World Liberty Financial, the Trump family-linked crypto project, over allegations involving investor treatment, token sales, and a controversial $75 million crypto-backed loan.
The move comes at a sensitive time for the crypto industry as U.S. lawmakers debate major digital asset legislation through the CLARITY Act.
In a letter sent to SEC Chair Paul Atkins on May 14, Warren asked regulators to examine whether World Liberty Financial may have misled investors or violated securities laws tied to its WLFI governance token.
According to Warren, Trump family-affiliated entities are reportedly entitled to receive 75% of token sale proceeds after expenses, while investors who bought WLFI tokens faced strict lock-up rules preventing them from selling.
The senator cited reports suggesting World Liberty Financial raised nearly $715 million through token sales, while the Trump family allegedly generated more than $1 billion in crypto-related wealth connected to the project.
Warren argued that stronger investor protections are needed as Congress continues reviewing broader crypto market legislation.
The biggest concern in Warren’s letter centers around a reported $75 million loan involving WLFI’s own token.
According to the allegations, World Liberty Financial used roughly $440 million worth of WLFI tokens as collateral to borrow funds through decentralized lending platform Dolomite earlier this year.
The transaction reportedly allowed WLF to withdraw around $65.4 million in its own USD1 stablecoin alongside another $10.3 million in USDC.
The controversy intensified because regular investors were still restricted from selling WLFI tokens during the same period. Following the transaction, WLFI price reportedly fell nearly 10% to a record low.
The timing of the letter also overlaps with ongoing debates around the CLARITY Act, one of the largest proposed crypto regulatory bills in U.S. history.
During the markup session, Warren introduced amendments targeting Trump family crypto involvement, though those proposals were later defeated along party lines.
Meanwhile, Donald Trump and his family currently hold roughly 22.5 billion WLFI tokens through DT Marks DEFI LLC, making the project a major part of their growing crypto-related wealth.
Warren has now requested formal SEC responses by May 26 as pressure around political involvement in crypto markets continues escalating.
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