{"id":11735,"date":"2026-05-17T05:00:27","date_gmt":"2026-05-17T05:00:27","guid":{"rendered":"https:\/\/ad-doge.com\/blog\/warren-zeroes-in-on-crypto-deal-structure-as-75m-loan-draws-attention\/"},"modified":"2026-05-17T05:00:27","modified_gmt":"2026-05-17T05:00:27","slug":"warren-zeroes-in-on-crypto-deal-structure-as-75m-loan-draws-attention","status":"publish","type":"post","link":"https:\/\/ad-doge.com\/blog\/warren-zeroes-in-on-crypto-deal-structure-as-75m-loan-draws-attention\/","title":{"rendered":"Warren Zeroes In On Crypto Deal Structure As $75M Loan Draws Attention"},"content":{"rendered":"<p>A $75 million loan backed by nearly half a billion dollars worth of a company&#8217;s own tokens is now at the center of a Senate push to get regulators involved in the Trump family&#8217;s crypto operations.<\/p>\n<h2>The Loan That Raised Questions<\/h2>\n<p><a href=\"https:\/\/worldlibertyfinancial.com\/\" target=\"_blank\" rel=\"noopener nofollow\">World Liberty Financial<\/a>, the crypto project tied to US President Donald Trump and his family, reportedly used around $440 million worth of its WLFI governance tokens as collateral to borrow money through Dolomite, a decentralized lending platform.<\/p>\n<p>The transaction produced roughly $65 million in the company&#8217;s own USD1 stablecoin and another $10 million in USDC. What made the deal stand out was the timing.<\/p>\n<p><img decoding=\"async\" data-recalc-dims=\"1\" loading=\"lazy\" class=\"wp-image-896594 size-full\" src=\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2026\/05\/a_023edd.png?resize=753%2C694\" alt=\"\" width=\"753\" height=\"694\" \/><\/p>\n<p>Regular investors who held WLFI tokens were still locked in \u2014 blocked from selling \u2014 while the transaction went through. Shortly after, the token&#8217;s price dropped nearly 10% to a record low.<\/p>\n<p>Senator Elizabeth Warren sent a letter to SEC Chair Paul Atkins on May 14 asking the agency to look into whether World Liberty Financial misled investors or <a href=\"https:\/\/www.aol.com\/news\/warren-demands-sec-probe-trump-135911295.html\" target=\"_blank\" rel=\"noopener nofollow\">broke securities laws<\/a> tied to the WLFI token. Warren set a response deadline of May 26.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">WARREN ASKS SEC TO INVESTIGATE WORLD LIBERTY FINANCIAL<\/p>\n<p>Senator Elizabeth Warren (<a href=\"https:\/\/twitter.com\/SenWarren?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\" target=\"_blank\">@SenWarren<\/a>) sent a letter to SEC Chair Paul Atkins (<a href=\"https:\/\/twitter.com\/SECPaulSAtkins?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\" target=\"_blank\">@SECPaulSAtkins<\/a>) on Thursday, urging the agency to investigate whether World Liberty Financial (<a href=\"https:\/\/twitter.com\/worldlibertyfi?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\" target=\"_blank\">@worldlibertyfi<\/a>), the Trump family&#8217;s crypto\u2026 <a href=\"https:\/\/t.co\/q9usPJxD6n\" rel=\"nofollow\" target=\"_blank\">pic.twitter.com\/q9usPJxD6n<\/a><\/p>\n<p>\u2014 BSCN (@BSCNews) <a href=\"https:\/\/twitter.com\/BSCNews\/status\/2055031710258225643?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\" target=\"_blank\">May 14, 2026<\/a><\/p>\n<\/blockquote>\n<h2>The Crypto Issue: A Lopsided Structure<\/h2>\n<p>The senator&#8217;s concerns go beyond the loan. According to <a href=\"https:\/\/www.banking.senate.gov\/newsroom\/minority\/ahead-of-crypto-markup-warren-presses-sec-to-investigate-trump-family-crypto-firm-for-potentially-misleading-investors\" target=\"_blank\" rel=\"noopener nofollow\">reports<\/a>, Trump-affiliated entities stand to collect 75% of all WLFI token sale proceeds after expenses.<\/p>\n<p>The investors who bought those tokens, by contrast, faced strict restrictions on when they could sell.<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"size-full\" src=\"https:\/\/www.tradingview.com\/x\/BagU6wcp\/\" width=\"1814\" height=\"921\" \/><\/p>\n<p>Warren&#8217;s letter cited reports that the company raised close to $715 million through <a href=\"https:\/\/www.arabictrader.com\/en\/news\/cryptocurrencies\/217316\/senator-elizabeth-warren-calls-for-an-urgent-investigation-into-a-cryptocurrency-project-linked-to-trump\" target=\"_blank\" rel=\"noopener nofollow\">token sales<\/a>, while the Trump family&#8217;s total crypto-linked wealth connected to the project reportedly crossed $1 billion.<\/p>\n<p>DT Marks DEFI LLC, together with certain Trump family members, reportedly holds around 22.5 billion WLFI tokens.<\/p>\n<p>&nbsp;<\/p>\n<p>Warren has been pushing for tighter investor protections as Congress reviews broader digital asset rules under the proposed <a href=\"https:\/\/www.grayscale.com\/the-stack\/the-clarity-act-where-are-we-now-and-where-do-we-go-next\" target=\"_blank\" rel=\"noopener nofollow\">CLARITY Act<\/a>, one of the largest crypto-focused bills in US history.<\/p>\n<p>Warren&#8217;s Political Moves Fall Short<\/p>\n<p>During a recent CLARITY Act markup session, Warren introduced amendments specifically targeting the Trump family&#8217;s involvement in crypto markets.<\/p>\n<p>Those amendments were voted down along party lines. The broader debate over crypto regulation continues, with the Warren letter adding pressure on the SEC at a moment when the agency is navigating both political crosswinds and calls from the industry for clearer rules.<\/p>\n<p>Whether Atkins, who is widely viewed as friendly to the crypto sector, will take formal action remains to be seen.<\/p>\n<p><em>Featured image from Drew Angerer\/Getty Images, chart from TradingView<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A $75 million loan backed by nearly half a billion dollars worth of a company&#8217;s own tokens is now at the center of a Senate push to get regulators involved in the Trump family&#8217;s crypto operations. The Loan That Raised Questions World Liberty Financial, the crypto project tied to US President Donald Trump and his&hellip;<\/p>\n","protected":false},"author":1,"featured_media":11736,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[219],"tags":[220,2845,51,3030,166,828,463,4089,5248,613],"class_list":["post-11735","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-altcoin","tag-altcoin","tag-clarity-act","tag-crypto","tag-paul-atkins","tag-sec","tag-stablecoin","tag-trump","tag-usd1","tag-warren","tag-wlfi"],"_links":{"self":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts\/11735","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/comments?post=11735"}],"version-history":[{"count":0,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts\/11735\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/media\/11736"}],"wp:attachment":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/media?parent=11735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/categories?post=11735"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/tags?post=11735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}