U.S. Senator Warren writes a letter calling for an investigation into PancakeSwap and the risks of decentralized exchanges

According to Foresight News, according to Decrypt, U.S. Senator Elizabeth Warren wrote to Treasury Secretary Scott Bessent and Attorney General Pamela Bondi, requesting an investigation into potential national security risks of decentralized exchanges, and specifically named PancakeSwap.

The letter mentioned that PancakeSwap is believed to be involved in laundering funds stolen by North Korean hackers, as well as trading USD1, a stablecoin associated with Trump. A report from blockchain analytics firm Allium shows that of the $1.4 billion cryptocurrency theft from the Bybit exchange, approximately $263 million (20% of the stolen funds) was laundered through PancakeSwap. Warren noted that decentralized platforms lack strict anti-money laundering and KYC controls, allowing bad actors to move, commingle and cash out illicit funds. Warren gave the two departments until January 12, 2026, to respond regarding risks and actions being taken, as well as measures to prevent cryptocurrency-related conflicts of interest.

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