Title: Trump Family Takes Control of World Liberty Financial Amid Major Fundraising Success
By Tom Wilson, Tom Bergin, Lawrence Delevingne, and Michelle Conlin
March 31, 2025 – LONDON/NEW YORK
In a significant development within the cryptocurrency sector, the Trump family has taken control of World Liberty Financial, a crypto venture that has raised over $550 million through the sale of governance tokens, named $WLFI. This financial milestone comes after the firm’s launch last fall, aimed at expanding access to financial services via decentralized finance (DeFi) systems.
Trump Family’s Major Stakes
World Liberty has reported that 75% of the net revenues from the token sales are now claimed by the Trump family. A detailed review indicated that this control effectively positions them to earn approximately $400 million in fees from the venture, with 60% of the proceeds from operations once the platform becomes fully operational. Current estimates suggest that after deducting the co-founders’ earnings, the crypto firm may retain a mere 5% of the funds raised thus far.
The governance tokens, which are a critical part of World Liberty’s business model, are non-tradeable and do not grant holders any voting rights on profit-sharing, raising concerns about their structure and benefits to ordinary investors. Experts have noted that World Liberty’s arrangements appear notably centralized for a DeFi project, which typically thrives on broader public participation and decentralization.
Concerns Over Conflicts of Interest
Critics of the arrangement have vocalized apprehensions regarding potential conflicts of interest, particularly given President Donald Trump’s incumbent status and his family’s financial stake in the crypto firm. Jim Angel, an associate professor specializing in DeFi regulation, expressed doubt over the economic benefits that $WLFI token holders could derive from their investment, suggesting that the governance structure excludes public investors from meaningful financial involvement.
While the Trump Organization stated that the president’s business dealings would be managed by a trust with his children overseeing daily operations, transparency and ethics remain hot topics among observers and critics. Government ethics experts have flagged the inherent risks of influence peddling, given the president’s regulatory authority over the asset class.
The Fundraising Success
World Liberty Financial’s impressive fundraising resulted predominantly from high-value purchases, with nearly 70% of the funds raised from buyers investing at least $100,000. Notably, over 50% of investments exceeded $1 million. Such participation often includes investors who believe that Trump’s involvement can add legitimacy and attract additional investors to the venture.
Crypto entrepreneurs Zak Folkman and Chase Herro, originally in charge of World Liberty, were removed from their positions as controlling stakeholders, further consolidating the Trump family’s influence over the project, according to recent updates on the firm’s website.
Broader Implications for Cryptocurrency
The emergence of World Liberty and the Trump family’s quick ascent in the crypto realm reflect a broader trend where prominent figures, particularly in politics, are increasingly engaging with digital assets. President Trump has branded himself as the “crypto president,” advocating for a more integrated approach to cryptocurrencies within the U.S. financial system. His stance underscores a commitment to enhancing the role of the U.S. dollar and reforming the banking system, potentially positioning the Trump family at the intersection of power and emerging technologies.
In recent moves, the Trump family has continued its expansion in the crypto space, as a venture including the president’s sons, Eric and Donald Trump Jr., announced a minority stake in a bitcoin mining company, American Bitcoin. The venture aims for public listing, demonstrating the family’s serious commitment to establishing a formidable presence in the cryptocurrency industry.
Conclusion
The developments at World Liberty Financial encapsulate the complex interplay between politics and the emerging cryptocurrency sector. As the Trump family navigates this uncharted territory, the potential ramifications regarding ethics, governance, and market influence will undoubtedly draw increased scrutiny from regulators, investors, and observers alike.