World Liberty Financial, a firm with close ties to President Donald Trump and his family, has forcefully rejected a Senate investigation into its operations, dismissing the inquiry as politically motivated and fundamentally flawed.

Inquiry Into Trump's Ties with The Various crypto Project

The pushback comes after Senator Richard Blumenthal, a ranking member of the Senate Permanent Subcommittee on Investigations, launched a preliminary probe into WLFI’s governance, political connections, and foreign investment sources on May 6.

In his formal letter, Blumentha demanded an extensive documentation from both WLFI and Fight Fight Fight LLC, the company behind the Trump-themed $TRUMP meme coin.

In his letter, Blumentha detailed concerns that these entities may have violated multiple federal ethics laws by facilitating transactions with foreign nationals under prosecution and by creating potential conflict of interest involving Trump.

Blumentha's probe is also based on his speculation that President Trump has been secretly gaining monetary profit from the TRUMP token and WLFI project.

The investigation also follows calls from other Senate Democrats, including Elizabeth Warren and Jeff Merkley, for a broader ethics review into what they termed “staggering conflicts of interest” involving WLFI, USD1, and a reported $2 billion foreign investment routed through Binance.

World Liberty Financial Push of The Dollar

In a letter issued through law firm BakerHostetler, WLFI’s attorneys refuted the allegations, and reaffirming its commitment to financial transparency and U.S-based compliance.

"World Liberty Financial is not operating in the shadows. It is building a transparent compliant financial system rooted in U.S trust, law, and leadership, with values like accountability and dollar dominance guiding every step."

The company emphasized that USD1 is a fully reserved, dollar-backed stablecoin, collateralized by U.S. Treasuries and cash equivalents, and designed to increase global demand for U.S. debt while expanding access to dollar-based financial tools, especially in underserved regions.

WLFI’s legal team further argued that the company’s mission is to strengthen, not undermine, U.S. monetary leadership.

“The company rejects the false choice between innovation and oversight. What it opposes is the misuse of regulatory authority and uncertainty to suppress lawful innovation. The future of finance must be shaped in Washington, D.C.-not in Beijing, Moscow, or behind the closed doors of legacy institutions resistant to evolving to serve the needs of customers around the world."

WLFI Denies Having Ties with Trump or Bill Zanker

WLFI’s attorneys categorically denied any affiliation with Fight Fight Fight LLC or Bill Zanker, who was WLFI's lawyers claim was mistaken to be one of the founders of WLF.

WLFI's attorneys are also calling the assertion of such a relationship a factual error in Blumenthal’s letter.

Despite this, Blumenthal and other lawmakers remain concerned about the potential for foreign governments and other actors to enrich and compromise President Trump through his association with WLFI.

The Senate probe has intensified as WLFI’s USD1 stablecoin was recently used in a $2 billion investment from Abu Dhabi’s MGX into Binance, and as the Trump family’s involvement in the project has drawn scrutiny over possible conflicts of interest and national security risks.

WLFI, primarily owned by entities linked to the Trump family, maintains that none of its day-to-day operations are managed by the former president or his immediate relatives, with the exception of Eric Trump, who serves on the board.

The Clash Between Politics and Digital Assets

This probe indicates the growing clash between politics and digital assets. President Donald Trump himself has also previously promoted digital asset initiatives, including the controversial $TRUMP meme coin.

Adding to the complexity, WLFI has received substantial backing from capital sources in Abu Dhabi. These connections have sparked concerns about potential foreign influence over U.S-based financial instruments.

Earlier this month, House Democrats launched a parallel investigation into Trump's deepening involvement in the crypto industry.

In a letter dated May 14, Representatives Gerald Connolly, Joseph, Morelle and Janie Raskin called on Treasury Secretary Scott Bessent to release all suspicious activity reports filed since 2023 concerning Trump-connected entities, including WLFI and the Official Trump token.

Amid the mounting controversy, Senate Democrats have introduced the Modern Emoluments and Malfeasance Enforcement (MEME) Act, which would prohibit federal officials and their families from creating, promoting, or financially benefiting from digital asset projects, including meme coins and stablecoins.

Lawmakers argue that such measures are necessary to prevent self-dealing and foreign influence in U.S. politics as digital assets become increasingly intertwined with political fundraising and influence.