World Liberty Financial (WLFI) Defends USD1 Stablecoin

(WLFI) has disputed the accusations made by Democratic Senator Blumenthal in his investigation into the company's USD1 stablecoin and its ties to President Trump's crypto ventures

Democratic Senator Richard Blumenthal is investigating World Liberty Financial (WLFI)’s USD1 stablecoin and its ties to President Trump’s crypto ventures.

The attorneys for World Liberty Financial (WLFI) have hit back at the claims made by Democratic Senator Richard Blumenthal in his investigation into the company’s USD1 stablecoin and its ties to President Trump’s crypto ventures.

In a statement to the press, attorneys for WLFI stated that the investigation by the top member of the Senate Permanent Subcommittee on Investigations is fundamentally flawed as it is based on incorrect information.

“Today, my attorneys responded to a letter addressed to me by Senator Richard Blumenthal. Our response is attached to this post. America — and the rest of the world — needs solutions like USD1. We will not be intimidated by politicians who have an axe to grind: we’re too busy getting on with the important job at hand.

Blumenthal, a top member on the Senate Permanent Subcommittee on Investigations, wrote to both World Liberty Financial and Fight Fight Fight LLC. In his letters, the senator expressed concerns over possible conflicts of interest and financial violations.

The correspondence from Blumenthal comes amid a broader inquiry into the Trump family and WLFI’s stablecoin. A source familiar with the probe told told Benzinga that the companies transacted business with individuals who are being investigated by law enforcement and that the transactions were intended to benefit the Trump family.

What Happened: According to the reports by Politico, which were confirmed by Benzinga, two of Trump’s personal ventures, Fight Fight Fight LLC and Trump Revenue Principal, were paid millions of dollars by WLFI and its affiliates.

The funds were channeled through a complicated web of transactions. For instance, one payment was made to an entity named “Broad Edge” which is a known shell company used by the Trump Organization.

Blumenthal is also examining a potential conflict of interest in an investment made by WLFI in a company that operates a restaurant in Mar-a-Lago.

Furthermore, the senator is investigating a $25 million payment from WLFI to an Ohio-based company which is owned by a close associate of the Trump family.

World Liberty Financial (WLFI) Introduces USD1 Stablecoin

Earlier this year, World Liberty Financial (WLFI) introduced the USD1 stablecoin, a fully-reserved digital currency backed by U.S. Treasuries and cash equivalents.

The company’s attorneys stated that USD1 is fully backed by U.S. Treasuries and cash equivalents. It seeks to boost international demand for U.S. Treasuries and offer financial services to underbanked individuals across the world.

“USD1 is designed to strengthen, not weaken, the U.S. financial system. It aims to provide people in underbanked areas with the opportunity to use U.S. dollar-based financial services and its purpose is to enhance, not diminish, the international status of the U.S. dollar,” the attorneys stated.

The attorneys for WLFI also refuted assertions made by Blumenthal that USD1 could pose a national security risk.

World Liberty Financial (WLFI) launched the USD1 stablecoin in March. Recently, the company announced the completion of a governance proposal to distribute USD1 tokens to qualified users.

The company’s legal team stated that all its operations meet the legal requirements.