Elon Musk is facing intense scrutiny over his upcoming payments platform, **X Money**, with Senator Elizabeth Warren raising serious concerns about its potential risks to consumers, national security, and financial stability.

## Regulatory Concerns Mount

In a letter to Musk, Senator Warren (D-MA) questions whether X Money can safely handle transactions, citing Musk's "track record operating X" as a major red flag. The platform, set to launch in early public access in April, promises features like funding through Visa Direct, debit card connections for peer-to-peer transactions, and bank account transfers.

## History of Controversy

Warren points to X's troubled past, including:
- **Regulatory criticism over child sexual abuse material circulation**
- **AI chatbot Grok generating harmful content**
- **Allowing users subject to US sanctions to pay for Premium subscriptions**

"This track record raises serious questions about the privacy, scams and frauds, and illicit finance risks X Money may pose," Warren writes.

## Banking Partner Under Scrutiny

Screenshots from early access users reveal that X Money deposits are "held by Cross River Bank" - an institution that faced **FDIC enforcement actions in 2023 and 2018** for "unsafe and unsound practices." Warren calls this partnership particularly concerning given the bank's history of regulatory violations.

## Crypto Connections and Regulatory Gaps

The letter highlights how **DOGE's dismantling of the Consumer Financial Protection Bureau** created regulatory gaps that could benefit X Money. Warren notes that the crypto-friendly **GENIUS Act includes suspicious carveouts** allowing private companies like X to launch stablecoins - coinciding with X's hints about entering the crypto market.

## Demanding Answers

Warren has given Musk until April 21st to answer more than a dozen questions about X Money, including:
- Whether Cross River Bank will serve as its banking partner
- Plans to issue a stablecoin
- Controls to prevent scams, fraud, and illicit finance
- Whether the service will "surveil and monetize consumer transaction data"

_The Verge_ reached out to X for comment but received no immediate response.

Elon Musk is facing questions about his upcoming payments platform X Money, and whether it will allow users to safely perform transactions.

Elon Musk's X Money Under Fire: Senator Warren Grills Tech Titan Over Payment Platform Risks

## The $424,000 Bitcoin Theft

Musician G. Love lost his life savings after downloading a **fake Ledger Live app** from Apple's Mac App Store, according to a post on his X account. Blockchain investigator ZachXBT traced the stolen **5.92 bitcoin** (worth about $424,000) through nine transactions to deposit addresses at KuCoin, an exchange with compliance issues that may hinder fund recovery.

## How the Scam Worked

The theft combined a **counterfeit app** with a critical mistake by the musician. While setting up his hardware wallet on a new computer, G. Love likely entered his **seed phrase** into the lookalike software. On its website, Ledger warns that requests to input seed phrases are a red flag for fraudulent software. Hardware wallets are designed to avoid exposing that phrase, but he assumed Apple's App Store had vetted the program. The funds vanished immediately after he confirmed the phrase, wiping out nearly a decade of retirement savings accumulated in bitcoin.

![Musician G. Love's X post about the theft](https://x.com/glove/status/2043047396322451700)

## The Aftermath and Warnings

"I been in the crypto circus since 2017," said Love in a follow-up post. "Today they caught me off guard. It was my own damn fault for not being more diligent. But let it serve as a warning. There's so many scams."

According to ZachXBT, Apple has seemingly pulled the malicious app from the Mac App Store, but the tech giant has issued no public comment. This isn't the first time counterfeit crypto software has slipped through app store reviews—in 2023, a fake Ledger Live app on Microsoft's store stole nearly **$600,000 in bitcoin** from multiple victims.

## The Risks of Self-Custody

G. Love's case highlights the **personal responsibility** required for true bitcoin self-custody. Holders need a solid grasp of operational security and how transactions settle on the Bitcoin network. This combination has long been seen as a barrier to broader mainstream adoption.

Physical theft is another risk, with criminals using violence in **wrench attacks** to force transfers. Recent examples include an $11 million daylight robbery and a French tax agent accused of selling personal data on crypto users to organized crime groups.

Even sophisticated players aren't immune. North Korean agents allegedly spent six months infiltrating Drift Protocol through social engineering before executing a **$285 million hack**. In another incident, the FBI arrested a man accused of stealing $46 million worth of cryptocurrency from a U.S. government reserve.

## The Shift Toward Centralized Custody

Many investors have sidestepped these risks by choosing **bitcoin ETFs** or corporate proxies. Strategy, the bitcoin treasury company formerly known as MicroStrategy, announced the purchase of another $1 billion worth of bitcoin, adding 13,927 bitcoin and bringing its total holdings to 780,897 bitcoin—more than **3.5% of all bitcoin in circulation**.

Bitcoin increasingly looks positioned to serve as a **reserve asset** within a new financial architecture rather than a tool for routine individual transactions. Multiple U.S. states have moved forward with strategic bitcoin reserves, and Iran has started demanding bitcoin for toll payments on safe passage through the Strait of Hormuz, signaling its value as a neutral medium for cross-border trade.

<iframe src="https://x.com/zachxbt/status/2043236481754611837" width="100%" height="400"></iframe>

The theft apparently combined a counterfeit app with a critical mistake by the musician.

Musician's Life Savings Stolen: How a Fake Crypto Wallet App on Apple's Store Led to a $424K Bitcoin Heist

**Justin Sun**, one of the largest investors in the Trump family's primary crypto company, **World Liberty Financial**, has publicly criticized the company, claiming it is misleading investors. This marks a significant moment as a crypto insider aligned with President Donald Trump calls out his family's crypto dealings, which Democrats argue benefit from presidential authority.

On Sunday, Sun, a billionaire and prominent figure in the crypto industry, took to X to accuse World Liberty of establishing a system that grants company officials unilateral power over user accounts, including the ability to freeze them. Sun alleges that his account has been frozen since September, preventing him from selling his holdings. According to analysis by blockchain tracking group Bubblemaps, the value of these holdings has declined by over $80 million, now standing at about $43 million. Sun reportedly invested at least $75 million in World Liberty tokens, once becoming its largest investor.

In his statement, Sun wrote, "I have always been an ardent supporter of President Trump and his crypto-friendly policy," but added, "this is the opposite of decentralization. This is a trap door marketed as an open door. I denounce the ongoing token scandals by the bad actors at WLFI."

World Liberty responded on social media by accusing Sun of misconduct that warranted the freeze and hinted at a potential lawsuit. The company pointed to past legal issues, noting that the Securities and Exchange Commission charged Sun in 2023 with fraud over crypto trades and illicit promotion, a case dismissed in March after he agreed to pay a $10 million fine. In a post on X, World Liberty stated, "We have the contracts. We have the evidence. We have the truth. See you in court pal."

World Liberty, co-founded by Trump's three sons and listing Trump as a co-founder emeritus, launched in 2024 during Trump's third presidential campaign. Trump was removed from official positions upon taking office, with the White House stating he is not involved in managing his family's crypto holdings. The company promised to become a leader in crypto and decentralized finance, with Eric Trump remaining a key figure and set to be the keynote speaker at the Bitcoin 2026 conference.

![Key Speakers At Bitcoin 2025](https://media-cldnry.s-nbcnews.com/image/upload/t_fit-760w,f_auto,q_auto:best/rockcms/2025-05/250530-bitcoin-conference-ew-401p-52ca7c.jpg)
*Eric Trump and Donald Trump Jr. at the Bitcoin 2025 conference in Las Vegas.*

Dozens of crypto platforms have emerged in recent years, each with their own tokens governed by company rules. Many offer assurances on security and fund handling, but most tokens have declined in value alongside the broader crypto market. World Liberty's primary token, WLFI, has lost 74% of its value since August, trading at around 8 cents as of Monday. However, its stablecoin, USD1, ranks among the top 10 most heavily used stablecoins, benefiting from partnerships and availability on major exchanges like Binance and Kraken.

Sun's criticism comes amid broader investor concerns about World Liberty's finances. In February, blockchain data reported by CoinDesk revealed that World Liberty borrowed $75 million from another crypto group, Dolomite, using 5% of the entire WLFI supply as collateral. This sparked fears on social media about the company's ability to repay if WLFI's value continues to drop. World Liberty responded on X, stating it is "nowhere near liquidation" and would add more collateral if needed, later announcing it had repaid $25 million.

Austin Campbell, a crypto consultant and instructor at New York University, commented that concerns about the loan arrangement are justified, noting, "If you took this conduct and translated it to traditional markets, you would have some problems."

A representative for the SEC did not respond to requests for comment. Last year, House Democrats dedicated a week to criticizing the Trump family's crypto activities, accusing Trump of "profiting off the Presidency," which the White House denied. World Liberty's governing document indicates that a Trump family-owned company is entitled to 75% of revenues from token sales after expenses. Trump's 2025 financial disclosure listed over $57 million in income from World Liberty, with the Trump Organization not commenting and the White House denying conflicts of interest.

Shortly before his inauguration in January 2025, Trump launched another crypto token called TRUMP through a separate entity. Its value has also plummeted, trading at around $2.81 compared to a peak of $45 at launch. A coin launched by Melania Trump around the same time followed a similar decline, though she has denied direct involvement in its management.

Justin Sun, among the largest investors in the Trump family’s primary crypto company, claims the company is misleading investors.

Trump Family's Crypto Empire Under Fire: Justin Sun Accuses World Liberty of Deception and Account Freezes

## Justin Sun Accuses Trump-Affiliated World Liberty Financial of Misconduct

Tron founder and prominent crypto investor **Justin Sun** has publicly accused **World Liberty Financial (WLFI)**, a project linked to former President Donald Trump, of serious misconduct and lack of transparency. This comes after Sun was previously at the center of pay-to-play allegations involving the Trump administration's SEC, fueled by his substantial investments in WLFI and the TRUMP memecoin.

### The Core Allegations: Backdoor Controls and Risky Borrowing

Sun has focused on two critical issues with the WLFI project:

1. **Backdoor blacklisting function**: The WLFI smart contract reportedly contains a function that allows the team to freeze any holder's tokens without notice or explanation.
2. **$75 million treasury loan**: The project's treasury recently borrowed approximately $75 million by pledging about **5 billion WLFI governance tokens** as collateral on its affiliated DeFi platform, Dolomite. This borrowing arrangement has drawn direct comparisons to how **Alameda Research borrowed against FTX's FTT token** before the exchange's collapse.

> "I have always been an ardent supporter of President Trump and his crypto friendly policy. As an early supporter who invested heavily in World Liberty Financial, I did so because I believed in the vision that was presented to the public: a decentralized finance platform that..."
> — H.E. Justin Sun 👨‍🚀 🌞 (@justinsuntron) April 12, 2026

### Sun Declares Himself the "Largest Victim"

Sun has called himself the **"first and single largest victim"** of World Liberty Financial. In September of last year, the project blacklisted roughly **545 million of his WLFI tokens** (worth about $9 million) after he transferred them amid heavy selling pressure. At the time, Sun posted publicly on X, insisting on his innocence and demanding the tokens be released.

In response, World Liberty Financial stated: "We do not seek to blacklist anyone. We respond when alerted to malicious or high-risk activity that could harm community members."

Sun wrote in his recent statement: "I denounce the ongoing token scandals by the bad actors at WLFI... Every action taken by the WLFI team to extract fees from users, to secretly implant backdoor controls over user assets, to freeze investor funds without disclosure or due process, and to treat the crypto community as a personal ATM — all of these actions are illegitimate and were never authorized by any fair, transparent, or good-faith community governance process."

### World Liberty Financial Fights Back

World Liberty Financial has mocked Sun and disputed his claims on X, posting: "Does anyone still believe @justinsuntron? Justin's favorite move is playing the victim while making baseless allegations to cover up his own misconduct. Same playbook, different target. WLFI isn't the first. We have the contracts. We have the evidence. We have the truth. See you in court pal."

> "Does anyone still believe @justinsuntron? Justin's favorite move is playing the victim while making baseless allegations to cover up his own misconduct. Same playbook, different target. WLFI isn't the first. We have the contracts. We have the evidence. We have the truth. See..."
> — WLFI (@worldlibertyfi) April 12, 2026

### Background: SEC Settlement and Political Connections

Notably, previous SEC charges against Sun and his companies were **settled last month**. The long-running case accused him of wash-trading TRX tokens and conducting unregistered securities offerings. Rainberry, one of Sun's entities, paid a **$10 million fine** with no admission of wrongdoing.

Democrats on the House Financial Services Committee previously highlighted the absence of a conviction in a letter to the SEC, tying it to perceptions of **pay-to-play** because Sun had invested at least **$75 million into Trump-linked projects**. Sun has taken a more defiant stance against WLFI since the case was resolved.

### Broader Context: Major Players and Political Ties

The controversy extends beyond Sun:

- **Binance** holds roughly **$2 billion in World Liberty Financial's USD1 stablecoin**, a position expected to generate tens of millions in annual revenue for the Trump-affiliated project. Trump pardoned former Binance CEO **Changpeng Zhao (CZ)** after his short prison stint for anti-money laundering failures.
- A firm tied to **UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan** committed **$500 million to World Liberty Financial** days before Trump's inauguration, taking a 49% stake and sending $187 million to Trump family entities.
- By contrast, developers behind the **Samourai Wallet Bitcoin privacy app** remain in prison for comparable money laundering facilitation charges.

### Impact on Crypto Industry and Bitcoin

The wave of alleged grifting and potential conflicts of interest around the Trump administration's crypto dealings has possibly **dulled the pro-bitcoin tailwind** many in the industry anticipated. According to reports, Trump-linked ventures pulled in roughly **$1.4 billion in 2025**, much of it from memecoins, stablecoins, and tokenization plays rather than Bitcoin itself.

There remains an opportunity for regulatory clarity through the **CLARITY Act**, but policy groups like Coin Center and the Bitcoin Policy Institute have warned that **developer protections must not be removed** before the bill reaches a vote, as it could leave builders exposed to legal risk and potentially push activity offshore.

Justin Sun has accused Trump-affiliated World Liberty Financial of misconduct and a general lack of transparency.

Justin Sun vs. Trump-Linked Crypto Project: Inside the $75M Loan Scandal and Blacklisting Controversy

**XRP** is trading inside a massive **9-year ascending triangle** on the monthly chart, with options volume surging **215.78%** to **$3.76 million**, signaling potential for a major price move.

### The 9-Year Ascending Triangle
Since 2017, the pattern has repeated: XRP hits the upper resistance, gets rejected, and retraces to find support at the rising trendline. After the recent August 2025 rejection, analysts like Ali Charts are watching for a retest of the macro support between **$0.75 and $0.80**. This zone is viewed as a key "buy the dip" opportunity before the triangle reaches its apex. Ali Charts noted on X: "When a 9-year consolidation finally breaks, the move is usually historic."

### The Paris Blockchain Week
XRP Ledger is set to take center stage at the **Paris Blockchain Week**. On April 15, Markus Infanger, SVP of RippleX at Ripple, will participate in a fireside chat focusing on blockchain's evolution from an asset class to core market infrastructure. The session will explore how organizations are leveraging blockchain to enhance financial processes, with Infanger highlighting real-life deployments of the XRP Ledger.

### The Options Explosion
Options volume has exploded by **215.78%** to **$3.76 million**, indicating that traders are positioning for a significant move. The Long/Short ratio on Binance stands at **2.59**, with top traders showing a **2.81x long bias**. Open Interest remains substantial at **$2.42 billion**, with XRP holding levels well above its pre-2025 baseline.

### XRP Price Prediction for April 13
XRP is showing minimal movement today, up just **0.1%**. In addition to the 9-year triangle, a large descending triangle has formed since the July 2025 peak, with price now at the apex—the convergence point of the upper descending trendline and horizontal support around **$1.30**. These compression points often resolve in sharp moves, and given the prolonged buildup, the move could be substantial. Immediate resistance is at the BB midline of **$1.3399**, with the upper band at **$1.3871** as the next target. The RSI at **43.20** is neutral-to-bearish but showing early signs of curling upward.

Image: Shutterstock

XRP (CRYPTO: XRP) is trading inside a giant 9-year ascending triangle on the monthly chart with options volume surging 215.78% to $3.76 million.

Bitcoin Articles Published Today

Bitcoin Articles Published Yesterday