Watchdog Report Sparks Controversy
A new report by Washington D.C.-based watchdog Accountable.us has accused World Liberty Financial Inc. (WLFI) — a company reportedly linked to the Trump family — of engaging in questionable token sales involving sanctioned entities tied to North Korea, Iran, and Russia.
The findings, published in a document titled “American Sell-Out”, suggest that WLFI’s token transactions may have helped adversaries of the United States bypass sanctions through crypto deals.
Alleged Deals With Sanctioned Entities
The watchdog alleges that on the day of Donald Trump’s inauguration as U.S. President, WLFI sold 600,000 WLFI tokens to a crypto trader known as Shryder.eth. This individual’s wallets had previously been blocked by decentralized exchange Uniswap for illegal activity.
The report further claims that WLFI sold nearly 3,500 WLFI tokens via Nobitex, an Iranian crypto exchange accused of enabling sanctioned Iranian groups to sidestep U.S. restrictions.
Beyond Iran and Russia, the report highlights that 62 WLFI token buyers had previously used Tornado Cash, a controversial crypto mixer sanctioned by the Biden administration in 2022. Those sanctions were later lifted by the Trump administration in March 2025.
This connection raised further questions about whether World Liberty Financial turned a blind eye to high-risk users until external pressure mounted.
Delayed Action Against High-Risk Wallets
The watchdog did acknowledge that World Liberty Financial eventually responded to concerns. In early September, the company blocked 272 wallets, including five flagged for high-risk exposure.
However, critics argue the measures came too late, long after the questionable token sales had already occurred.
“Given the late hour of this disclosure, Americans must ask whether this effort was done to comply with the law, or to cover for sales to potential bad actors,” the report concludes.
Political and Financial Implications
The allegations carry significant weight, not just because of their ties to internationally sanctioned entities, but also due to the Trump family’s association with World Liberty Financial. The report has sparked debate on whether these dealings reflect poor compliance oversight or deliberate risk-taking in pursuit of token sales.
The controversy could also reignite political debates about crypto regulation, sanctions enforcement, and the intersection of politics and digital finance.
The “American Sell-Out” report by Accountable.us has placed World Liberty Financial under the spotlight, accusing it of selling tokens to adversaries of the U.S. and delaying corrective measures. While WLFI eventually blocked risky wallets, the watchdog insists that Americans deserve clarity on why action took so long.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.