Senator Elizabeth Warren Urges SEC to Investigate Trump-Linked WLFI Project, Citing $75M Borrowing Concerns on May 13

According to a letter to SEC Chair Paul Atkins, Senator Elizabeth Warren urged the agency to investigate World Liberty Financial and its WLFI token on May 13, citing concerns over a $75 million stablecoin borrowing arrangement backed by WLFI as collateral through DeFi lending protocol Dolomite. In her letter, Warren flagged potential disclosure violations and insider favoritism, noting that investors may not have received sufficient information about transaction risks and conflicts of interest. She also raised concerns about the lack of transparency regarding WLFI’s market liquidity, price formation, and collateral valuation mechanisms, warning that prices could be distorted if most collateral assets are not freely traded in markets. Warren called on the SEC to comprehensively review the project’s coin sales, lending structures, and investor protection measures, particularly given the political connections involved.