The political storm around World Liberty Financial and its flagship product
The political storm brewing around World Liberty Financial following Senate Democrat Richard Blumenthal’s investigation into the firm’s flagship product, stablecoin USD1, continues to escalate.
Senator Blumenthal, the ranking member of the Senate Permanent Subcommittee on Investigations, issued letters to both World Liberty Financial and Fight Fight Fight LLC, the company behind the President Trump-themed memecoin, earlier this week. In his inquiries, Senator Blumenthal expressed concern over potential violations of federal law and breaches of fiduciary duty by the firms, as well as the possibility of foreign actors investing in the U.S. digital asset space through backdoor deals.
The letter to World Liberty Financial focused on contributions from the Trump family to the company and the company’s close ties to the former president. It also highlighted a $2 billion investment from MGX, a company founded by a Chinese national, into Binance, which was made in USD1 and later used to purchase BTC. Senator Blumenthal tied this transaction to national security threats, as it invited foreign participation in a U.S. financial institution with limited oversight.
In response to the senator’s investigation, attorneys from the law firm BakerHostetler, acting on behalf of World Liberty Financial, penned a letter to Blumenthal’તી
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