Trump Family Earned $500 Million from Crypto Deal Prior to AI Financial Corp’s Dramatic Collapse Affecting Investors
New York, June 10, 2026 — The family of former U.S. President Donald Trump reportedly profited approximately $500 million from a cryptocurrency transaction that preceded a steep decline in the value of AI Financial Corp., a company involved in the deal. The collapse has severely impacted investors who purchased shares and tokens tied to the firm.
The Deal and Initial Success
In August 2025, World Liberty Financial—a crypto venture with close ties to the Trump family—completed a significant sale of $1.5 billion worth of cryptocurrency tokens to AI Financial Corp., a company formerly known as Alt5 Sigma. Reports indicate that the Trump family’s stake entitles them to 75% of the proceeds from these token sales, translating into nearly $500 million in net gains after fees and expenses.
Donald Trump Jr. and Eric Trump proudly marked this occasion with a high-profile event at the Nasdaq stock exchange. At that time, Alt5 Sigma’s shares were trading at $8.97 each. Following the deal, the company rebranded itself as AI Financial Corp. and saw initial enthusiasm surrounding the Trump connection, fueled in part by speculation on the former president’s potential return to political prominence.
Sharp Decline and Investor Losses
However, less than a year later, AI Financial Corp.’s stock price plummeted over 90%, falling from nearly $9 to just 66 cents by June 2026—a staggering 93% loss. This sharp decline has raised serious concerns about the company’s viability, with warnings from AI Financial that it could face delisting from Nasdaq and possibly struggle to sustain its operations moving forward.
Investors who had hoped the Trump association would boost the company’s fortunes face significant losses. Since the announcement of the partnership, AI Financial has experienced considerable instability, including the turnover of three CEOs and three external auditors within a few months.
Underlying Causes of the Collapse
The troubles intensified in the first quarter of 2026 when the value of the World Liberty Financial (WLFI) crypto tokens held by AI Financial plunged. The tokens were initially purchased for about 20 cents each—part of the $1.5 billion acquisition totaling approximately 7.3 billion tokens. By June, the token price had dropped to roughly 5.7 cents, a 72% decrease, reducing the tokens’ value to about $412 million.
The precipitous fall in token value resulted in a $348 million impairment on AI Financial’s balance sheet. Compounding the problem, AI Financial reportedly borrowed funds from World Liberty Financial earlier this year, then utilized part of the loan to attempt to stabilize its dwindling share price—efforts which ultimately failed.
Eric Trump’s Public Denial of Management Role
Eric Trump has publicly refuted claims of having an active role in managing AI Financial. In a May statement on the social media platform X, he asserted that he holds "zero leadership or decision-making role" in the company, dismissing reports suggesting otherwise.
Implications and Outlook
AI Financial’s collapse serves as a cautionary tale for investors drawn in by the celebrity endorsement and political affiliations, highlighting the risks inherent in speculative cryptocurrency ventures. The company’s current market valuation stands at approximately $89 million—a fraction of the original investment values associated with the World Liberty Financial tokens.
As AI Financial confronts the possibility of delisting and operational challenges, affected shareholders and token holders are left grappling with substantial financial losses. The episode underscores the volatility of cryptocurrency markets and the importance of thorough due diligence regardless of high-profile associations.
This report is based on information available as of June 10, 2026, from NDTV and related sources.