Sen. Richard Blumenthal (D-CT) sparked on Friday through the crypto company of the Trump family, World Liberty Financial-for what he called the “seriously inadequate” response to an investigation into the Senate about the company’s business practices.
“This seriously inadequate reaction easily avoids the fact that foreign governments and others can enrich the president and compromise through World Liberty Financial,” said Blumenthal on Friday in a statement shared with DecryptReferring to a letter sent by the company earlier this week.
“The refusal of WLFI to answer even the most fundamental questions about President Trump’s financial complications with the company evokes serious concerns,” the senator continued. “And I will continue to demand transparency for the American people.”
World Liberty Financial, led by Chase Herro, Zak Folkman, the Trump family and the Witkoff family-Die close to the Trumps are a so-called Defi project, the species that makes the trade, loans and loans of crypto-assets without external intermediaries like banks possible. The project, launched in September during the run -up to the US presidential election, increased $ 550 million in a token sale and has issued his own stablecoin March.
Earlier this month, Blumenthal, the ranking of the permanent subcommittee of the Senate on research, sent a letter The leadership of World Liberty, who informs the decentralized financing company that it is now being investigated for possible violations of government ethics and other laws, including the foreign emolument clause of the US Constitution. The clause prohibits federal officials from accepting salaries, reimbursements or profit from foreign governments without the consent of the congress.
The investigation was opened days after World Liberty, who is partly owned by President Trump and his sons, announced one $ 2 billion deal Supported by the Government of the VAE and facilitated by the new Stablecoin of World Liberty, USD1. Days before, the company announced It was agreed to advise the Pakistani government on crypto-related matters.
Blumenthal said that such business transactions form “unprecedented conflicts of interest and national security risks” and the company asked to submit important information to the subcommité of the Senate Research – including details with regard to the involvement of President Trump in the activities of the company.
On Thursday, the lawyers of World Liberty answered the investigation of Blumenthal, which they rejected as “inaccuracies and fundamentally inadequate conclusions”.
“The company has carried out rigorous zeal to ensure compliance with the applicable legal and regulatory obligations in every phase,” wrote World Liberty, Teresa Goody Guillén.
While the letter emphasized the importance of the self-declared mission of World Liberty to “democratize access to the financial system,” it was not aimed at President Trump’s ownership interest in the company or possible conflicts of interest with foreign governments. Neither of the information that Blumenthal had asked about the activities of World Liberty.
Questions in the crypto transactions of the Trump family are now about Capitol Hill, while Democrats grab the story. Huisdemocrats sent one on Wednesday letter To the Minister of Finance Scott Bessent, demand access to all suspicious activity reports (SARS) that has submitted his department in recent months with regard to the now numerous of the president Crypto -efforts.
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