Trump Family’s Crypto Company Faces Criticism from Major Investor
April 14, 2026 — By Rob Wile, NBC News
World Liberty Financial, the Trump family’s primary cryptocurrency firm, is currently under scrutiny from one of its largest investors, sparking renewed questions about the company’s operations and financial practices.
Investor Allegations
Justin Sun, a billionaire and prominent figure in the cryptocurrency industry, publicly accused World Liberty Financial (WLFI) of misleading investors and creating what he described as a “trap door” rather than an open and decentralized platform. Sun has been closely involved with the company, reportedly investing at least $75 million and at one point becoming its largest investor.
Sun alleges that since September he has been unable to access or sell his holdings due to the company freezing his account unilaterally. According to analysis by blockchain tracking group Bubblemaps, the value of Sun’s frozen holdings has shrunk from over $80 million to approximately $43 million amid recent market declines.
“I have always been an ardent supporter of President Trump and his crypto-friendly policy,” Sun said in a statement on X (formerly Twitter). “However, this is the opposite of decentralization. This is a trap door marketed as an open door. I denounce the ongoing token scandals by the bad actors at WLFI.”
Company’s Response and Legal Threats
In response to Sun’s allegations, World Liberty Financial accused him of misconduct that justified the account freeze and indicated the company may take legal action against him. The firm emphasized on its social media channels, “We have the contracts. We have the evidence. We have the truth. See you in court pal.”
Sun has been previously charged by the Securities and Exchange Commission (SEC) in 2023 with fraud related to cryptocurrency trading and illicit promotion, though that case was dismissed earlier this year after he agreed to pay a $10 million fine.
As of now, representatives of both Sun and the crypto lender Dolomite, which has financial ties to World Liberty, have not responded to requests for comment.
Background on World Liberty Financial and Trump Family Involvement
World Liberty Financial was founded in 2024 amid Donald Trump’s third presidential campaign. The company lists Donald Trump as co-founder emeritus, while his three sons—Eric Trump, Donald Trump Jr., and another—are co-founders and continue to have active involvement. Upon taking office, Donald Trump was removed from any official management positions at the company. The White House has maintained that the former president does not participate in managing the family’s crypto interests.
Eric Trump remains a notable figure in the crypto space and is slated to be the keynote speaker at the upcoming Bitcoin 2026 conference. The company has promoted itself as a leader in crypto and decentralized finance through partnerships and listings on major exchanges such as Binance and Kraken.
Financial Concerns and Market Performance
Despite initial enthusiasm, World Liberty Financial’s primary token, WLFI, has faced a steep decline in value, losing approximately 74% since August 2025. Currently trading around 8 cents per token, the WLFI token’s collapse mirrors broader turbulence in the cryptocurrency market.
Nonetheless, World Liberty’s stablecoin, USD1, remains among the top ten most heavily used stablecoins, benefiting from widespread availability and strategic alliances.
In February, data reported by CoinDesk highlighted a $75 million loan that World Liberty had taken from Dolomite, using 5% of WLFI’s total token supply as collateral. This move stoked worries about the company’s ability to repay the loan if WLFI token prices continued to fall. On social media, WLFI sought to allay fears by stating it was “nowhere near liquidation” and that it could supply additional collateral if necessary. The company also announced that it has repaid $25 million of the loan.
Austin Campbell, a cryptocurrency consultant and instructor at New York University, commented that such financial practices would raise concerns if translated into traditional markets, underscoring risks involved in the crypto sector.
Political Context and Previous Criticism
Democrats in Congress have previously raised alarms about the Trump family’s crypto ventures, accusing them of profiting off the presidency. World Liberty’s governing documents reportedly entitle a Trump family-owned company to 75% of the revenues from token sales after expenses. Donald Trump’s 2025 financial disclosure listed more than $57 million in income from World Liberty.
In addition to WLFI, Donald Trump launched another crypto token, TRUMP, shortly before his 2025 inauguration. This token has similarly experienced a sharp decline in value, from an initial $45 to about $2.81 currently. Melania Trump also launched her own coin around the same time, which has seen a comparable downturn; she has denied direct involvement in its management.
The White House and representatives of the Trump Organization have declined to comment on current issues, though they have repeatedly denied any conflicts of interest relating to the family’s cryptocurrency dealings.
As the situation develops, the regulatory scrutiny and investor concerns surrounding World Liberty Financial are likely to intensify, adding another complex chapter to the evolving story of cryptocurrency involvement in high-profile political families.
Rob Wile is a Pulitzer Prize-winning journalist covering breaking business stories for NBCNews.com.