WLFI Under Investigation: Analyst Warns Hyperliquid Could Be the Next Target

• WLFI faces scrutiny after U.S. senators raised concerns about a $10,000 portion of its $550 million token sale.
• Analyst ZachXBT suggests Hyperliquid might also face increased oversight if WLFI’s case progresses.
• Despite the headlines, WLFI’s price has remained relatively stable with strong daily trading volumes.

World Liberty Financial (WLFI) is currently under regulatory scrutiny after concerns about illicit funds related to its token sale emerged. Senators Elizabeth Warren and Jack Reed questioned a $10,000 portion of the raised $550 million, which they suspect might come from improper sources. Despite this, the flagged amount is just 0.002% of the total funds.

At the time of writing, WLFI's price was $0.1363, down 2.7% over the past 24 hours and 5.59% over the past week, with a daily trading volume of $142.7 million.

On-chain analyst ZachXBT questioned the validity of the claims, pointing out that the flagged $10,000 is a minor amount compared to the overall $550 million raised. He noted the discrepancy in how the issue was framed, referencing previous inaccurate statements from Senator Warren. ZachXBT also warned that if regulatory actions are taken against WLFI, other projects, such as Hyperliquid, could be next in line.

The situation surrounding WLFI has intensified discussions about crypto regulation in the U.S. While the flagged amount is small, the push for stricter regulations is growing. This has caused some platforms to reassess their compliance strategies in anticipation of more scrutiny from regulators.

Despite the controversy, WLFI’s price has only seen a slight dip. The market remains active, and traders seem to be waiting to see how the regulatory situation unfolds. For now, there's no significant exit from WLFI positions, but attention on WLFI and similar tokens is expected to persist.