Crypto Firm Backed by Trump Family Raises $550 Million Amid Ethical Scrutiny
World Liberty Financial (WLFI), a cryptocurrency venture with connections to the family of former US President Donald Trump, has raised a significant $550 million through token sales, according to recent reports. This financial activity has sparked considerable ethical concerns, given the intersection of political influence and financial interests in the rapidly evolving digital asset landscape.
WLFI conducted two rounds of token sales, with over $250 million worth of crypto assets purchased in the second round alone. The company’s press release, issued on Monday, March 17, indicated that over 85,000 individuals underwent Know Your Customer (KYC) verification to participate. These token sales were exclusively available to accredited investors.
According to a report by CoinDesk, WLFI tokens are currently untransferable and cannot be traded on crypto exchanges because the company is not yet listed. Zach Witkoff, co-founder of the venture, stated that “WLFI is on track to supercharge DeFi [decentralised finance].”
Established in October of the previous year, WLFI describes itself as a crypto banking platform. CNBC reported that the Trump family stands to gain 75% of the platform’s net revenue. These token sales coincide with Trump’s recent efforts to promote a crypto-friendly agenda. Earlier this month, he signed an executive order to establish a Strategic Bitcoin Reserve.
However, the former president’s involvement in the cryptocurrency sector has raised ethical questions surrounding potential conflicts of interest. Justin Sun, the founder of the blockchain platform Tron, purchased approximately $75 million worth of WLFI tokens in January. Reports emerged a month later indicating that Sun and the US Securities and Exchange Commission (SEC) were considering settling a civil fraud case filed by the regulatory body against the crypto entrepreneur. Additionally, David Sacks, the Trump administration’s AI and crypto czar, reportedly divested over $200 million in digital asset-related investments before taking the government position to avoid any appearance of conflict.
