The Trump family's cryptocurrency venture, World Liberty Financial, has been quietly selling additional tokens to private investors after its public fundraising rounds, leaving many early holders unable to exit their positions. The project, co-founded by members of the Trump and Witkoff families, raised over US$550 million in two public rounds, but subsequent sales of 5.9 billion tokens to accredited investors have raised concerns about transparency.
Unexplained Token Allocations
According to intelligence platform Tokenomist.ai, which examined governance filings at Bloomberg's request, the number of tokens allocated to founders, team members, advisers, and partners increased without public explanation. World Liberty confirmed the sales, describing them as “white glove” transactions, but declined to disclose buyer identities or the use of proceeds.
Investor Restrictions
Early investors were allowed to sell only 20% of their holdings last year, with no unlocking schedule provided for the remainder. This contrasts with standard token sale practices, where schedules are typically disclosed in advance. The project's disclosures state that DT Marks DEFI LLC, an entity tied to Donald Trump and his family, is entitled to 75% of WLFI token sale proceeds after expenses and holds 22.5 billion tokens.
Political and Ethical Questions
The situation raises unprecedented ethical questions, as a sitting president's family holds financial stakes in a live token project that sets governance rules and directs treasury sales. The White House stated that Trump is not involved in managing the family's crypto ventures, with assets held in a trust managed by his children. White House Counsel David Warrington also noted that Steve Witkoff, the president's special envoy to the Middle East, has divested from World Liberty and recuses himself from related official matters.
World Liberty recently removed a page listing its co-founders from its website, with a spokesperson citing routine updates. The project's broader corporate orbit is showing strain as token prices fall, highlighting the risks associated with celebrity-backed crypto ventures.
