Elizabeth Warren Raises Concerns Over PancakeSwap's National Security and Political Ties
Senator Elizabeth Warren has raised alarms about national security risks posed by decentralized exchanges (DEXs), specifically naming PancakeSwap in a letter addressed to Treasury Secretary Scott Bessent and Attorney General Pamela Bondi. She is seeking answers by January 12 regarding regulatory gaps and enforcement actions related to these platforms.
Warren's letter cites analyses from Allium and TRM Labs linking PancakeSwap to a $1.4 billion heist involving Bybit, noting that approximately 20% of stolen funds—around $263 million—were laundered through PancakeSwap. She warns that DEXs facilitate fund movement without traditional anti-money-laundering checks such as Know Your Customer (KYC) protocols, allowing illicit actors to transact outside standard financial monitoring.
Further concern stems from PancakeSwap's connection to USD1, a Trump-backed stablecoin issued by World Liberty Financial. In June, PancakeSwap partnered with World Liberty Financial on a liquidity-drive promotion featuring over $1 million in prizes over a four-week period. USD1 has also become an integral part of Binance's infrastructure, though Binance has denied any link between CEO Changpeng Zhao's pardon and the USD1 integration.
Warren questions whether PancakeSwap's ties to World Liberty Financial and the Trump family may have improperly influenced regulatory enforcement decisions. She has been a long-time critic of crypto lobbying and Trump-linked cryptocurrency initiatives, including calls to investigate the TRUMP meme coin and scrutiny over the Trump White House's engagement with crypto ventures.
At the time of reporting, PancakeSwap had not responded to requests for comment.
