News that former U.S. President Donald Trump is connected to a new crypto company, World Liberty Financial, is raising both investment and ethical questions. The company is set to generate significant revenue, which is expected to be shared with Trump and his affiliates.
Several investors have purchased tokens from the company, with investments motivated, at least in part, by Trump’s involvement. The company is set to give token holders a voice in decisions regarding product choices and marketing.
Mike Dudas, a crypto investor, bought over $145,000 worth of tokens from World Liberty Financial. He stated that he was excited by the plan to make decentralized finance (DeFi) more accessible. Dudas believed the tokens would increase in value, citing Trump’s involvement as a significant factor.
Reuters has identified other investors, in locations including Gibraltar and Puerto Rico, who have invested millions in the $WLFI tokens. Many of these individuals were drawn in, at least partially, by the connection with Trump.
Sigil Fund, a Gibraltar-based fund, stated that World Liberty Financial is “directly connected” to Trump. The fund’s chief investment officer, using the pseudonym “Fiskantes,” invested a significant amount in the tokens. The firm has raised at least $300 million by selling these tokens.
Trump’s crypto ventures have raised concerns among ethics experts about the potential for conflicts of interest and influence over the administration. While federal rules prevent executive branch employees from involvement in policy issues that affect their financial interests, those rules do not apply to the president or vice president.
Justin Sun, the founder of the blockchain network Tron, has emerged as a prominent buyer of the token, investing at least $75 million. Sun’s involvement has raised concerns due to Tron’s alleged use by militant groups and pending charges against him by U.S. securities regulators.
World Liberty Financial has also made acquisitions of Tron’s token.
Trump’s business ventures, including a meme coin, $TRUMP, are raising concerns among ethics experts. Trump stated that he does not know much about the coin, but he confirmed that he launched it.
Dudas, who founded crypto media outlet The Block, purchased a substantial amount of the tokens at 1.5 cents each. He rejected the idea of potential conflicts of interest.
The sales of the tokens are recorded anonymously on the blockchain. Other holders have been identified, with Tron’s Sun being the largest outside investor. Another buyer of the tokens is Troy Murray, a crypto entrepreneur based in Puerto Rico. Previously, Murray was hit with a cease-and-desist order by the SEC.
