U.S. Senator Warren harshly criticized the Trump family's involvement in the encryption sector, stating that the WLFI project is "brazen corruption."

U.S. Senator Elizabeth Warren from Massachusetts recently publicly criticized the Trump family and their supported World Liberty Financial (WLFI) crypto assets project again, accusing it of being "naked corruption." The WLFI token once pushed the Trump family's holdings value to $5 billion after its listing, but then the price fell by 55% from its peak of $0.46, currently hovering around $0.23. Warren has long called for stronger regulation of crypto assets and warned that the intertwining of political and business interests could distort the market.

Warren Criticizes Trump's Family Crypto Activities, Targeting Corruption Issues

Warren posted on social media X on September 2, strongly criticizing the Trump family for their involvement in the WLFI Token project, calling it "a clear act of corruption." The project allowed the Trump family to hold over 22 billion WLFI Tokens through DT Marks DEFI LLC, with a paper value that once exceeded 5 billion dollars, even surpassing their long-held real estate investment portfolio to become the family's most valuable asset.

However, this valuation has not been fully realized. The price of WLFI surged to $0.46 upon listing but has significantly retreated, currently falling to $0.22, with a daily drop of 5%, and a market cap of approximately $5.61 billion. Warren had previously questioned the regulatory proposals such as the "GENIUS Stablecoin Act" and the "Digital Asset Market Clarification Act" (CLARITY Act) for being too lenient, claiming that they effectively open the door for the industry to benefit.

WLFI price experiences big fluctuations, the project team initiates token burn attempts to stabilize the market.

To address the continuous price decline, World Liberty Financial burned 47 million WLFI Tokens on September 2, accounting for 0.19% of the circulating supply. Although this move aims to boost the coin price by reducing supply, the market reaction has been tepid, with WLFI continuing to oscillate around the support level of $0.21, while resistance is seen in the $0.25–0.26 range.

Recently, trading volume has significantly shrunk, and the market is filled with a wait-and-see sentiment. To rebuild confidence, the project team has proposed a continuous buyback and burn plan supported by protocol fees. If approved, it may support long-term price trends through a continuous deflationary mechanism.

Warren Calls for Stricter Regulation, Warns of Conflicts Between Political and Business Interests

Warren's criticism targets not only WLFI but also aims to reveal the potential impact of Crypto Assets on the American political system. She has repeatedly emphasized that existing regulatory loopholes could allow politicians to profit from industry connections, leading to serious conflicts of interest and market distortions. Warren has also called for legislation to prohibit public officials from trading Crypto Assets or participating in related business activities.

Despite the White House denying any conflict of interest and emphasizing the independence of the president's business and political activities, Warren and other opinion leaders still warn that Trump's involvement in both politics and the crypto space may have an improper impact on the market.

Conclusion

Senator Warren's criticism of the Trump family's crypto business has once again drawn public attention to the intertwining of digital currency regulation and political interests. The WLFI Token, while gaining significant attention due to its Trump background, highlights the high volatility and speculative risks in its market performance. As the repurchase and destruction proposal progresses and the debate on U.S. crypto regulatory policies heats up, such projects and their political connections will continue to face dual scrutiny from the market and the system.