Trump Family Takes Command of Crypto Venture Amidst Controversial Fundraising Tactics
By Tom Wilson, Tom Bergin, Lawrence Delevingne, and Michelle Conlin
LONDON/NEW YORK, March 31, 2025 – In an unprecedented move that intertwines political power with emerging financial technologies, the Trump family has assumed control of World Liberty Financial, a cryptocurrency venture that has raised over $550 million largely through controversial governance structures favoring its insiders.
A Historic Fundraising Campaign
World Liberty Financial, which was launched last fall, is designed to facilitate financial services access through cryptocurrencies, aiming to eliminate the need for traditional banking intermediaries—a concept prevalent in the decentralized finance (DeFi) sector. As of mid-March, the venture has reportedly secured approximately $550 million by selling governance tokens, branded as $WLFI, to a mix of affluent investors, many of whom purchased tokens exceeding $1 million.
The fundraising surge occurred amidst significant interest stemming from Donald Trump’s election victory, with a notable influx of capital following the triumph. Despite its rapid accumulation of funds, the project has yet to launch a public platform and has a relatively small operational staff, raising questions about its long-term viability.
Trump Family’s Financial Hold
Significant developments in the governance structure of World Liberty occurred in January, as the Trump family was officially documented to have gained control of the business. According to a review of changes on World Liberty’s website, two co-founders, Zak Folkman and Chase Herro, were replaced by a Trump-family-owned entity, which now holds a 60% stake in the venture.
This arrangement affords the Trump family a commanding 75% claim on net revenues from token sales and 60% from World Liberty’s operations once the platform is fully established, entitling them to an estimated $400 million from the raised funds. This financial distribution is remarkable, especially considering that traditional norms in DeFi promote decentralized control among investors.
Critics have quickly pointed out that this structure restricts meaningful financial participation from public investors. "It’s hard for me to see any economic benefit to the owner of these tokens," remarked Jim Angel, an associate professor at Georgetown University specializing in DeFi regulation.
Reactions and Potential Conflicts of Interest
The implications of the Trump family’s involvement in a burgeoning financial domain have stirred concerns over potential conflicts of interest. The Trump Organization has stated that the former president’s investments and assets are managed through a trust, and he plays no role in daily operations. However, the intricacies of the family’s ties to a highly speculative industry have been scrutinized by political opponents and ethics experts, who argue it could lead to favoritism or influence peddling.
Ross Delston, a former U.S. banking regulator, warned of the dangers posed by the merging of political influence and cryptocurrency, calling it an ideal channel “for governments or oligarchs overseas to funnel money to the president.”
The Buyer Demographics
A detailed analysis of the investor base revealed that nearly 70% of capital raised came from wallets that made substantial investments, with over 50% originating from transactions of $1 million or more. While many investors opted to remain anonymous, several identified individuals expressed faith in Trump’s involvement as a rationale for their investments, hoping that his prominence would boost the project’s success.
The Early Days of World Liberty
The origins of World Liberty trace back to a connection facilitated through New York real estate mogul Steve Witkoff, a long-time associate of the Trump family. Folkman and Herro, who have collaborated on various ventures, reportedly navigated their introduction to political elite through Witkoff. Their previous business endeavors included a range of online projects, some of which witnessed significant legal challenges, raising questions about their operational reliability.
Despite these controversies, the hope for World Liberty rests on the vision that it could revolutionize access to financial services for everyday Americans. Leaders of the venture have professed a mission centered on democratizing finance, although the results have left many skeptics questioning the true beneficiaries of its operations.
As the story unfolds, the intertwining of the Trump family’s business interests with the fast-evolving arena of cryptocurrency raises critical considerations about the intersection of governance, finance, and ethics in an uncharted regulatory environment.
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