TechFlow News, May 17: U.S. Senator Elizabeth Warren, Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, has formally written to Securities and Exchange Commission (SEC) Chair Paul Atkins, urging the agency to investigate World Liberty Financial, Inc. (WLF), a cryptocurrency company affiliated with the Trump family, to determine whether it has misled investors or violated applicable securities laws.
The letter reveals that in early April, WLF pledged approximately $440 million worth of its WLFI tokens—issued via the decentralized lending protocol Dolomite—as collateral to borrow $75 million in assets, including $65.4 million in USD1 stablecoins and $10.3 million in USDC. This move triggered a 10% plunge in WLFI’s price—the largest single-day drop on record—and severely strained liquidity on the Dolomite platform. Furthermore, WLF’s subsequent token-unlocking schedule—which mandates that early investors hold their tokens for at least two years before selling—sparked strong backlash from investors.
In her letter, Warren emphasized: “Securities anti-fraud protections apply to all securities transactions, regardless of technological form or the political background of those involved.” Warren has requested that the SEC issue an official response to this investigative request by May 26, 2026.
