TLDR
- Senator Elizabeth Warren wrote to Treasury Secretary Scott Bessent and Fed Chair Jerome Powell urging no taxpayer bailout of crypto
- Bitcoin has dropped ~50% from its October all-time high, hitting $60,000 on Feb. 6
- Warren warned a bailout could directly enrich Trump’s crypto company, World Liberty Financial
- Bessent’s response at a Feb. 6 hearing was seen by Warren as a “deflection,” saying only “we are retaining seized Bitcoin”
- World Liberty Financial sold 173 wrapped Bitcoin to repay $11.75M in debt and avoid liquidation
Senator Elizabeth Warren has sent a letter to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell asking them to confirm they will not use taxpayer money to support the crypto market during Bitcoin’s ongoing price drop.
Bitcoin has fallen roughly 50% from its all-time high set in October. It hit a local low of $60,000 on February 6.
Warren’s letter was sent on February 18. It arrived the same day that World Liberty Financial, a crypto company co-founded by President Trump, hosted its first World Liberty Forum at Mar-a-Lago in Palm Beach, Florida.
Warren wrote that any government intervention to stabilize Bitcoin “would disproportionately benefit crypto billionaires.” She specifically warned it could also enrich Trump and his family through their stake in World Liberty Financial.
She pointed to a February 6 House Financial Services Committee hearing where Congressman Brad Sherman asked Bessent directly whether taxpayer money would be deployed into crypto assets.
Bessent did not say no. He responded by saying “we are retaining seized Bitcoin,” referring to crypto held by the US government from prior law enforcement actions.
Warren described this as a deflection. She wrote that it is “deeply unclear” what plans, if any, the US government has to intervene in the Bitcoin selloff.
What Warren Is Asking For
Warren asked both agencies to rule out direct purchases of crypto, guarantees, and liquidity facilities as tools to prop up Bitcoin prices.
She also called on federal financial agencies to strengthen protections for retail crypto investors. In 2025, a record $17 billion was lost or stolen through crypto fraud, according to her letter.
The letter detailed losses suffered by major crypto holders during the selloff. Strategy Inc., run by Michael Saylor, has seen its shares fall nearly 20% since the start of the year. Binance founder Changpeng Zhao reportedly lost close to $30 billion. Coinbase CEO Brian Armstrong reportedly lost $7 billion.
World Liberty Financial’s Role
Warren also flagged a specific transaction by World Liberty Financial. The company sold around 173 wrapped Bitcoin to repay $11.75 million in USDC stablecoin debt, avoiding a forced liquidation as Bitcoin’s price dropped below $63,000.
Warren wrote that Bitcoin’s decline “has been amplified by cascading liquidations of leveraged positions.”
The Federal Reserve confirmed it received the letter but declined to comment. The Treasury Department did not immediately respond.
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