A government watchdog has branded President Donald Trump’s cryptocurrency venture, World Liberty Financial (WLFI), an “American Sell-Out,” raising alarms over its alleged token sales to entities linked to North Korea, Iran, and sanctioned money-laundering platforms. In a scathing report released on September 18, 2025, Accountable.US accused WLFI of facilitating transactions with high-risk actors, sparking national security concerns and intensifying scrutiny of Trump’s burgeoning crypto empire. As the cryptocurrency market surpasses $4 trillion, these allegations highlight ethical and regulatory challenges in the rapidly evolving digital asset landscape.
Explosive Allegations Against World Liberty Financial
The report from Accountable.US, a Washington, D.C.-based nonprofit, details troubling transactions involving WLFI’s $WLFI tokens, which have contributed to Trump’s crypto assets accounting for 73% of his net worth, estimated at over $1 billion. On Inauguration Day 2025, WLFI reportedly sold 600,000 tokens valued at $10,000 to a cryptocurrency trader known as “Shryder.eth,” who conducted 55 transactions with a wallet sanctioned by the U.S. Treasury’s Office of Foreign Assets Control (OFAC) for ties to North Korea’s Lazarus Group, a notorious state-sponsored hacking collective.
Further, in October 2024, WLFI sold nearly 3,500 tokens to a user who deposited over $26,000 on Iran’s largest crypto platform, Nobitex, which has facilitated sanctions evasion. This user also controls a pro-Iran account posting anti-American content, raising red flags about WLFI’s compliance practices. Additional sales of over 10,000 tokens to a user linked to A7A5, a Russian “ruble-backed sanctions evasion tool,” compound concerns about the venture’s exposure to illicit actors.
National Security and Ethical Concerns
The watchdog’s findings underscore potential national security risks, as WLFI’s transactions with sanctioned entities could undermine U.S. foreign policy objectives. Accountable.US Executive Director Tony Carrk criticized the Trump family’s crypto empire, stating, “The bar is obviously very low when even shady investors tied to Iran and a notorious money-laundering platform are apparently not off limits.” These allegations come amid broader ethical concerns about Trump’s crypto ventures, which have generated significant personal wealth while raising questions about conflicts of interest, particularly given his influence over U.S. regulatory frameworks.
The report also highlights WLFI’s ties to Tornado Cash, a known money-laundering platform, further amplifying scrutiny of its due diligence processes. With the crypto market’s valuation soaring, the lack of robust know-your-customer (KYC) and anti-money laundering (AML) protocols in decentralized finance (DeFi) platforms like WLFI poses systemic risks, potentially enabling illicit financial flows.
A Controversial Crypto Empire
Launched in September 2024 with the slogan “Make America Great Again, this time with crypto,” WLFI has rapidly expanded, raising $650 million privately and selling $550 million in tokens by early 2025. The venture, led by Trump and his sons, operates a dollar-pegged stablecoin, USD1, and plans a crypto payments app, positioning itself as a key player in DeFi. However, its rapid growth has drawn criticism for opaque practices and potential self-dealing, exemplified by a $750 million deal where WLFI sold tokens to Alt5 Sigma, a recently acquired firm with a questionable past.
The involvement of controversial figures like crypto billionaire Justin Sun, who invested $45 million in WLFI and faced SEC fraud allegations in 2023, adds to the venture’s contentious profile. Sun’s TRON platform, also linked to WLFI, has been flagged for facilitating transfers tied to terrorist organizations, further complicating the ethical landscape.
Regulatory and Market Implications
The allegations against WLFI come at a time of heightened regulatory scrutiny in the cryptocurrency sector, with the SEC’s Universal Listing Standards and recent ETF approvals signaling a push for greater oversight. Critics, including ethics experts like Kathleen Clark, argue that WLFI’s transactions raise red flags about compliance with U.S. sanctions and anti-money laundering laws, potentially exposing the venture to legal risks. The SEC’s paused investigation into Sun’s activities, coinciding with his WLFI investment, further fuels concerns about regulatory capture under Trump’s administration.
Market reactions to the report have been muted, with Bitcoin and other cryptocurrencies maintaining stability around $115,760 and a $4 trillion market cap. However, the controversy could dampen investor confidence in DeFi platforms, particularly those linked to politically sensitive figures. The broader crypto market, bolstered by 43 Bitcoin ETFs and $625 billion in inflows, remains resilient, but WLFI’s alleged ties to sanctioned entities may prompt stricter due diligence requirements across the sector.
Challenges and Future Outlook
WLFI’s rapid ascent, fueled by high-profile endorsements and Trump’s crypto-friendly policies, faces significant hurdles. The watchdog’s report calls for congressional probes into potential conflicts of interest, with Democrats and ethics advocates urging greater transparency. The venture’s reliance on loosely regulated DeFi protocols, while innovative, exposes it to risks of exploitation by bad actors, necessitating robust compliance frameworks to restore trust.
As the cryptocurrency market evolves, WLFI’s ability to address these allegations will be critical. The venture’s plans to make $WLFI tokens tradable, approved in July 2025, could boost liquidity but also amplify scrutiny of its investor base. For now, the “American Sell-Out” label poses a reputational challenge, potentially undermining Trump’s narrative as the “crypto president” while highlighting the need for ethical governance in digital finance.
A Call for Accountability
The Accountable.US report casts a harsh light on World Liberty Financial, accusing it of prioritizing profit over national security and ethical integrity. As allegations of token sales to North Korea, Iran, and sanctioned platforms reverberate, the Trump family’s crypto venture faces a pivotal moment. With the global cryptocurrency market thriving, the controversy underscores the urgent need for transparency and compliance in DeFi, ensuring that innovation does not come at the expense of accountability. As regulatory and public scrutiny intensifies, WLFI’s response will shape its legacy in the rapidly evolving digital asset landscape.
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