Regulatory Body Criticizes Trump’s Cryptocurrency Initiative as ‘American Sell-Out’ Over Alleged Token Transactions with North Korea and Iran

Government oversight organization Accountable.US has accused President Trump’s World Liberty Financial crypto initiative of distributing tokens to entities associated with North Korea, Iran, and sanctioned money-laundering operations in a recent report titled “American Sell-Out.”

The revelations raise concerns regarding national security, as Trump’s crypto business has amassed over $1 billion in personal wealth while his family’s enterprises rapidly grow within the digital asset landscape.

The report pinpointed particular transactions, such as a $10,000 acquisition on Inauguration Day by “Shryder.eth,” a trader who executed 55 transactions with a Treasury-sanctioned wallet linked to North Korea’s Lazarus Group.

Source: Accountable.US’s report

World Liberty Financial also sold nearly 3,500 tokens to a user who deposited over $26,000 on Iran’s largest cryptocurrency exchange and manages a pro-Iran social media account that shares anti-American content.

Other troubling sales included over 10,000 tokens to a user who interacted with A7A5, characterized as a Russian “ruble-backed sanctions evasion tool,” whose creators faced U.S. sanctions in August 2025.

The report indicated that the venture also sold tokens to at least 62 users who had previously used Tornado Cash, a crypto mixing service that facilitated the laundering of over $1 billion in illicit funds before Trump lifted Biden-era sanctions in March 2025.

Trading Patterns Raise Red Flags Across Enemy Nations

The Accountable.US investigation uncovered ‘concerning’ transaction patterns linking World Liberty Financial token purchasers to America’s primary adversaries.

On January 20, 2025, user “Shryder.eth” acquired 666,666 WLFI tokens for $10,000, subsequently receiving an additional $47 in promotional tokens during a June airdrop campaign.

Blockchain analysis indicated that Shryder.eth had previously received multiple payments from wallets now sanctioned by the Treasury’s Office of Foreign Asset Control due to their ties with the Lazarus Group.

This North Korean state-sponsored hacking group was sanctioned by Trump’s initial administration in 2019 and was added to the FBI’s “Cyber Most Wanted List” in 2020.

After the Lazarus Group transactions in 2022, Shryder.eth was barred from mainstream crypto platforms, including Uniswap and OpenSea.

Source: Accountable.US’s report

These services only restrict wallets “owned or associated with clearly illegal behavior like sanctions, terrorism financing, hacked or stolen funds,” as per Uniswap’s screening criteria.

The Iranian connection involved user “0x062,” who purchased 3,468 WLFI tokens in October 2024 while holding over $26,000 in deposits on NoBitex.IR, Iran’s largest crypto exchange.

This platform has enabled sanctions violations and catered to “a range of illicit actors,” including IRGC-affiliated ransomware operators and networks linked to Hamas.

The report suggests that the user appears connected to an X account, which has shared pro-Iran content and threats stating that U.S. warships “will sleep on the ocean floor” if America engages in the Israel-Iran conflict.

Late Compliance Efforts Fail to Address Core Security Gaps

World Liberty Financial only revealed the blacklisting of five accounts for “high risk exposure” on September 5, 2025, including the wallet of Tron’s founder Justin Sun, several months after the contentious token sales took place.

The company did not blacklist Shryder.eth until August 31, 2025.

This delayed action occurred as Trump’s crypto ventures faced increasing scrutiny regarding foreign connections.

Trump’s financial disclosures indicated he personally earned over $57 million from World Liberty Financial, with crypto assets now constituting 73% of his net worth.

The Trump family’s digital empire has expanded swiftly, increasing from 60 to 185 Bitcoin treasury companies within a year while generating billions in trading volume primarily on foreign exchanges.

The national security ramifications extend beyond individual transactions.

Senator Elizabeth Warren sought clarification from the Trump administration following the Lazarus Group’s $1.5 billion hack of crypto exchange Bybit, cautioning that pending GENIUS Act legislation could “create a superhighway for Donald Trump’s corruption” due to insufficient safeguards.

As of August, Trump Media & Technology Group holds approximately $2 billion in Bitcoin, representing 40% of the company’s market value.

However, TMTG shares have consistently underperformed Bitcoin itself, declining 47% over six months while Bitcoin increased by 10.6% during the same timeframe.

Most recently, Eric Trump, co-founder of an American Bitcoin mining company linked to President Donald Trump, witnessed its stock surge on September 3, enhancing their paper wealth by over $1.5 billion.

Similar to Sen. Warren, Accountable.US Executive Director Tony Carrk questioned why the Trump family crypto empire accepts funds from “shady investors tied to Iran and a notorious money-laundering platform.”

“Trump’s crypto empire is a vehicle for foreign actors to buy influence anonymously and without disclosure.”
Our executive director Tony Carrk reveals how Trump’s crypto venture puts U.S. workers and investors at risk. pic.twitter.com/8phS0blq41

— Accountable.US (@accountable_us) September 19, 2025

He called for a congressional inquiry into foreign influence channels and the safeguards that prevent presidents and their families from profiting through digital assets while retaining access to sensitive government information.

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