Warren Demands Fed, Treasury Block Crypto Bailouts After $30B, $7B Losses
Sen. Warren urged Fed Chair Powell and Treasury Secretary Bessent to reject taxpayer-funded Bitcoin bailouts that would enrich crypto billionaires after Binance’s CZ lost $30B and Coinbase’s Armstrong lost $7B. She cited World Liberty Financial’s sale of 173 wrapped Bitcoin to cover $11.75M debt and $17B in crypto fraud losses.
1. Warren’s Bailout Rejection
Sen. Elizabeth Warren wrote to Fed Chair Jerome Powell and Treasury Secretary Scott Bessent demanding they publicly rule out the use of taxpayer funds for direct purchases, guarantees or liquidity facilities to stabilize Bitcoin prices, citing the risk of transferring wealth to crypto billionaires.
2. Billionaire Losses Highlighted
Warren’s letter pointed to major market losses this year: Binance founder Changpeng Zhao shed nearly $30 billion in net worth, Coinbase CEO Brian Armstrong lost around $7 billion, and shares of Strategy’s parent firm fell almost 20% year-to-date.
3. World Liberty’s Debt Resolution
She also highlighted World Liberty Financial’s recent sale of 173 wrapped Bitcoins to generate $11.75 million in liquidity to cover stablecoin debt, illustrating how cascading liquidations can worsen a crypto market selloff.
4. Retail Investor Protections
Beyond the bailout warning, Warren urged federal agencies to strengthen protections for retail investors, noting record crypto fraud losses of $17 billion in 2025 and calling for enhanced regulations and oversight.