- Warren urges Treasury and Justice Department to investigate risks tied to decentralized crypto exchange PancakeSwap.
- Data shows North Korean hackers laundered $263 million through DeFi platforms after record crypto theft.
- Studies find decentralized exchanges host hundreds of thousands of scam wallets used to hide funds.
Senator Elizabeth Warren is once again pressing federal agencies to investigate risks tied to decentralized cryptocurrency exchanges, pointing to new data that links major crypto crime, national security threats, and a platform connected to a Trump-affiliated crypto project.
In a letter sent to the Treasury Department and the Department of Justice, Warren asked whether regulators are actively investigating PancakeSwap, a decentralized exchange that allows users to trade crypto without registering accounts or verifying their identity.
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The National Security Threat
Warren cited blockchain research showing that PancakeSwap has been used to move large amounts of illicit funds.
According to Allium, North Korea’s Lazarus Group laundered about $263 million through decentralized platforms, including PancakeSwap, out of $1.46 billion stolen in what investigators have called the largest crypto hack to date.
U.S. officials have previously warned that North Korea uses these funds to support its nuclear weapons and missile programs.
The Trump Connection: Scrutinizing World Liberty Financial
The letter points out PancakeSwap plays a central role in trading a stablecoin linked to World Liberty Financial, a crypto company associated with the Trump family. According to The Wall Street Journal, more than 90% of trading volume for the company’s flagship coin, USD1, takes place on PancakeSwap.
Warren questioned whether political influence could affect enforcement decisions, especially as Congress debates new crypto legislation.
How Are Scammers Using Decentralized Exchanges?
Research cited in the filing shows how criminals exploit these platforms. A 2025 academic study identified more than 384,000 scam-related wallet addresses operating on PancakeSwap and Uniswap. In many cases, scammers collect funds, swap them for other tokens, and then send them through crypto mixers like Tornado Cash to hide the money trail.
Chainalysis’s 2025 Crypto Crime Report found that crypto crime is becoming more “professionalized,” with criminals increasingly relying on decentralized finance tools rather than centralized exchanges.
What Happens Next?
Warren is asking the Treasury and the Justice Department to explain what national security risks decentralized exchanges pose, whether they are actively investigating platforms like PancakeSwap, and whether current laws are strong enough to stop abuse.
She has requested formal answers by January 12, saying the public deserves clarity on how the government plans to protect the financial system from crypto-enabled crime and foreign adversaries.
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Source: https://coinedition.com/warren-presses-doj-on-pancakeswap-questions-trump-tie/
