Trump’s WLFI Faces Renewed Pressure Over Alleged Ties to Illicit Finance

WLFI, a Trump family-linked DeFi project, has faced renewed pressure over allegations that it may be tied to illicit financial activities. Two U.S. senators, Elizabeth Warren and Jack Reed, have requested that the U.S. Department of Justice and the Treasury Department investigate WLFI.

CNBC reported that the Senators’ request cited a September report alleging WLFI has ties to illicit actors in Russia, North Korea, and Iran. According to the lawmakers, WLFI sold tokens to people with open and obvious connections to the enemies of the US. As a result, the alleged relationships pose a significant national security risk to the United States.

The report revealed that earlier this year, WLFI sold its tokens to several entities that appeared highly suspicious. These included traders tied to North Korea’s Lazarus Group, alongside others linked to sanctioned Russian platforms and an Iranian crypto exchange.

Interestingly, the lawmakers’ request for an investigation into WLFI represents the latest call for an inquiry into Trump-related crypto endeavours. However, the latest move comes amid an ongoing struggle in the WLFI token’s performance.

WLFI Witnesses Price Struggle

According to CoinGecko data, WLFI has faced a significant price struggle in recent weeks.

The token’s price has fallen by approximately 10% over the past week and by over 4% in the last 24 hours. As a result, the token is currently trading at around $0.1384 as of the time of this press release.

With barely three months on the open market, WLFI’s history has been riddled by short-lived rallies and prolonged declines. The token’s price has dropped by more than 55% from its Sept. 1’s $0.3086 debut price. During this period, it struggled to reach a high of $0.2 before the Oct. 10 market incident.

Hence, WLFI’s latest performance aligns with a broader marketwide instability in asset prices that has impacted major assets. In recent weeks, several cryptocurrencies have struggled to record notable price upticks owing to multiple macroeconomic and technical factors. This has caused most of them, including major assets like Bitcoin, to reach several-month low prices.

However, despite WLFI’s price struggle, the project has continued to push new developments and expansions to improve adoption.

WLFI Unveils New Developments

Last week, WLFI announced that its USD1 stablecoin is now live on AB Chain to expand its global adoption. The launch, which is part of a partnership with AB Chain, will enhance the stablecoin’s use cases across trading, lending, and liquidity.

The decentralized AB wallet is expected to become the most user-friendly wallet for USD1, offering zero-fee transfers, near-instant settlement, and more. The wallet is also expected to feature full compatibility with all chains to ensure cross-chain usage of USD1.

The expansion to AB Chain now makes USD1 available on multiple networks, including BSC, Ethereum, Solana, Tron, and others. This is expected to allow enhanced accessibility to the stablecoin, making it readily available like its competitors.

CoinGecko data shows that USD1 is now ranked as the seventh-largest stablecoin, with a market capitalization of over $2.7 billion. This positions the token ahead of RLUSD, FDUSD, and USDtb, among others.