Trump Family Crypto Project Quietly Sold as Holders Got Stuck
By Bloomberg | May 01, 2026
A cryptocurrency venture co-founded by the Trump family and affiliated business partners has sparked controversy after quietly selling billions of tokens to private investors, leaving early token holders largely unable to access or liquidate their investments.
Background on the Project
The initiative, known as World Liberty Financial (WLFI), was co-founded by members of the Trump and Witkoff families, alongside other business associates. Zach Witkoff, whose father Steve Witkoff serves as President Trump’s special envoy to the Middle East, leads the project as CEO. Donald Trump and Steve Witkoff were initially listed as co-founder emeritus on the project’s website. However, recent updates have removed this co-founder information, with company representatives citing routine website changes.
World Liberty Financial garnered significant attention due to its affiliation with a sitting U.S. president’s family. The project positions itself within the decentralized finance (DeFi) space, aiming to leverage blockchain technologies with ambitious fundraising efforts.
Investment and Token Sales
In August 2025, Nasdaq-listed Alt5 Sigma raised $1.5 billion to accumulate WLFI tokens, signaling strong investor interest. Meanwhile, early investors reportedly contributed over $550 million across two fundraising rounds, attracted by the promise of a powerful backer and the potential for substantial returns.
However, after these initial fundraising rounds closed, records examined by Tokenomist.ai—an intelligence platform analyzing blockchain data—revealed that World Liberty quietly sold an additional 5.9 billion WLFI tokens to accredited private investors in transactions valued at hundreds of millions of dollars. Much of the proceeds from these sales were routed to entities affiliated with the project’s founders.
These private sales were not publicly disclosed to the broader investor base and only came to light when Tokenomist.ai identified increases in founder, team, adviser, and partner token allocations without public explanation. When questioned, World Liberty confirmed these transactions, describing them as “white glove” sales to private buyers but declined to disclose the identities of these buyers or the destinations of the funds raised.
Impact on Early Investors
The fallout for early investors has been significant. While initial fundraising participants were allowed to sell only 20% of their holdings last year—tokens originally acquired at prices as low as 5 cents—the remaining 80% of their WLFI tokens remain locked with no clear strategy for unlocking or selling them.
Unlike most cryptocurrency token sales, World Liberty did not provide investors with an upfront token unlocking schedule. A current governance proposal, currently under investor consideration, would impose a minimum two-year lock on all holders—founders and investors alike—before any gradual unlocking of tokens could begin over subsequent years.
According to the proposal, investors who reject the new terms risk having their tokens locked indefinitely. Additionally, insiders who accept the schedule must permanently burn 10% of their token allocation, a move described by the company as aligning the interests of founders and investors.
Financial Interests
Under disclosures published on the project’s website, DT Marks DEFI LLC—a Trump family affiliated entity—is entitled to receive 75% of WLFI token sale proceeds after agreed reserves and expenses are deducted. This entity, along with certain Trump family members, reportedly holds 22.5 billion WLFI tokens in total.
World Liberty has not explained who received the proceeds from the private sales or how the minted tokens have been distributed among founders, advisors, or other partners. This opaque approach has fueled concerns among investors and observers.
Official Responses
The White House has emphasized that Donald Trump is not involved in the day-to-day management of these crypto ventures, stating control is held by family members and business associates. A White House spokesperson, Anna Kelly, said, “President Trump’s assets are in a trust managed by his children. There are no conflicts of interest.”
Furthermore, White House Counsel David Warrington stated that Steve Witkoff has divested from World Liberty Financial and does not participate in official matters that could impact his financial interests.
Future Outlook
The Trump family’s embrace of digital assets represents a strategic pivot from their traditional revenue model, which historically focused on licensing the Trump name across various industries including real estate, apparel, and publishing. Cryptocurrency projects like World Liberty have introduced new revenue streams but come with increased regulatory and reputational risks, especially given the complex tokenomics and restrictions now facing early investors.
David Wachsman, spokesperson for World Liberty Financial, defended the project: “We have enormous conviction in this vision and take a long-term view towards everything we do, from our fundraising efforts to the careful crafting of governance proposals designed to benefit the entire ecosystem.”
Yet for many early investors, the reality has been less encouraging. With token prices of WLFI plunging to new lows amid these restrictions, holders remain locked into investments with scant options to exit, highlighting the challenging dynamics of involvement in politically connected crypto ventures.
This report is based on an analysis of blockchain governance filings, public disclosures, and interviews with knowledgeable sources conducted by Bloomberg.