U.S. senator calls for investigation into PancakeSwap-WLFI connection

JH Kim

Summary

U.S. Senator Elizabeth Warren has called for an investigation into the connection between PancakeSwap and WLFI.
Warren raised allegations that PancakeSwap tried to inflate the price of WLFI-related coins.
Concerns were reiterated that the regulatory gap for KYC-free DeFi platforms like PancakeSwap could be exploited for illegal activities.

U.S. Senator Elizabeth Warren argued that the relationship between the decentralized finance (DeFi) platform PancakeSwap and World Liberty Financial (WLFI), led by President Donald Trump's family, should be investigated. Warren pointed out allegations that PancakeSwap attempted to inflate the price of coins related to WLFI.

On the 16th (local time), according to crypto-focused media CoinDesk, Warren sent a letter to Treasury Secretary Scott Bessent and the Attorney General saying, "We should investigate whether PancakeSwap is associated with inappropriate political influence exerted by the Trump administration."

Warren raised suspicions that PancakeSwap may have attempted to inflate the price of coins issued by WLFI, and emphasized the need to examine related transaction structures and conflicts of interest. She also argued that WLFI, being a virtual asset (cryptocurrency) project led by the Trump family, could give rise to conflicts of interest.

Warren also criticized DeFi platforms in general for processing hundreds of millions of dollars in daily transactions while not requiring know-your-customer (KYC) verification. She reiterated concerns that regulatory gaps could be exploited for money laundering, fraud, and other illegal activities.

The letter came amid ongoing political disputes over virtual asset businesses linked to the Trump family. Attention is focused on whether and how the Treasury Department and the Justice Department will respond, including whether they will launch investigations.