Secret Deals and Foreign Investments: The Rise of Trump’s Crypto Firm
By Eric Lipton, David Yaffe-Bellany, and Ben Protess
April 29, 2025
In the evolving landscape of cryptocurrency, a significant development has emerged from the intersection of private enterprise and government policy—World Liberty Financial, a cryptocurrency firm linked to former President Donald Trump and his sons. Recent investigations reveal a series of controversial deals that blur ethical boundaries and raise questions about the involvement of political figures in private business interests.
The Genesis of World Liberty Financial
At the heart of this inquiry is an exchange that took place just days before Donald Trump’s inauguration in January 2025. An unsolicited pitch was sent via the encrypted messaging app Signal by Zachary Folkman, an entrepreneur with a controversial past. Folkman, representing World Liberty Financial, approached a cryptocurrency startup based in the Cayman Islands with an enticing proposal to create a mutual endorsement through the exchange of digital currencies.
However, the proposal came with a caveat: the Cayman-based firm would need to make a significant undisclosed payment to World Liberty under the guise of a partnership. Folkman assured potential partners that their association with the Trump family would enhance their profiles, claiming that other companies had already invested between $10 million and $30 million into World Liberty.
Ethical Concerns and Rejections
Executives at the targeted Cayman startup, along with several other firms that received similar overtures, ultimately deemed the proposal unethical. They viewed the potential deal as a troubling effort to monetize political connections by selling an implicit endorsement while concealing the financial transactions from the public. Such arrangements, they believed, undermined the integrity of the burgeoning cryptocurrency market and raised flags about transparency and accountability.
Despite the rejections, World Liberty’s executives remained undeterred and managed to secure similar deals with other companies in the crypto space. Their efforts culminated in over $550 million in sales, a substantial portion of which was reportedly allocated for Trump’s family.
A New Political Landscape
This scenario illustrates the unprecedented fusion of political influence and private enterprise within the United States, particularly in the realm of cryptocurrency. As Trump continues to navigate the complex political landscape, the implications of his family’s financial interests in World Liberty Financial introduce a layer of scrutiny that could redefine the norms of engaging in public policy while reaping the benefits of private profit.
Political analysts and cryptocurrency experts alike are left to ponder the ramifications of these developments on American governance and regulatory frameworks for the ever-evolving crypto industry. As the Biden administration continues to grapple with policies surrounding crypto assets, the revelations surrounding World Liberty Financial add a significant chapter to the ongoing discourse about ethics in politics and business.
Contact Information:
Eric Lipton is an investigative reporter for The New York Times, covering a range of topics from defense spending to environmental issues. David Yaffe-Bellany writes extensively about the cryptocurrency industry, while Ben Protess investigates critical elements of domestic politics.
Publication Notes:
A version of this article appears in print on May 1, 2025, in the A section of the New York edition, under the headline: “Trump Shapes the Policy On Crypto, and Cashes In.” For ongoing coverage and updates, readers can subscribe to The New York Times.
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