Key Takeaways
- DeFi project World Liberty Token announced Monday it completed a $550 million sale of the WLFI governance tokens, with 75% of the income going to the Trump family.
- World Liberty Financial said the end of the second token sale brought in an additional $250 million.
- Large profits could be a positive signal for investors, potentially increasing the likelihood of coin prices rising in the future, but raise some ethical questions due to Trump’s involvement.
World Liberty Financial (WLFI), the DeFi project reportedly owned by the family of US President Donald Trump, has announced the end of its token sales. According to the report, the Trump family will be collecting a substantial sum of money to operate the company.
According to a report on CNBC and other media outlets, DT Mark DeFi, which runs World Liberty Financial on behalf of the Trump family, could collect a profit of at least $390 million, which is at least 75% of the $550 million raised during the token sale. The company announced the end of the second round of token sales on Monday, March 17, 2025.
85,000 Participants Undertook Mandatory KYC
A press release from World Liberty Financial stated that over 85,000 participants undertook a mandatory know-your-customer (KYC) verification exercise to participate in the token sale. The project’s co-founder Zach Witkoff, son of billionaire US envoy Steve Witkoff, was quoted in the press release as saying that:
“WLFI is on track to supercharge DeFi or decentralized finance.”
Last January, TRON blockchain founder Justin Sun increased his stake in the project by purchasing $75 million worth of WLFI tokens. In a court filing the following month, it was revealed that Sun and the SEC were exploring an amicable solution regarding the regulator’s civil proceedings against the crypto entrepreneur.
Apart from World Liberty Financial, US President Donald Trump’s family has been associated with a number of crypto projects besides his push for a crypto-friendly regime in the US. Trump has already signed an executive order to establish a Strategic Bitcoin Reserve. The administration AI and crypto czar Davis Sacks hinted that the reserve would begin with over 200,000 Bitcoins the government already holds from civil and criminal forfeitures.
Conflict of Interest Questions Emerge
When World Liberty Financial launched its token sale last October, it took a long time for investors to buy into the idea, such that by the eve of the US election in 2024, only about $15 million worth of WLFI had been sold. However, matters took a different trajectory following the announcement that Trump had won the US Presidency. Justin Sun led the growing list of new investors, after which he was appointed one of the project’s advisors.
According to SEC filings, DT Marks DeFi is based in Jupiter, Florida, where Trump’s executive offices are located. It’s unclear who else will receive a share of the $390 million. However, since he took office as President, questions about potential conflicts of interest have arisen, considering his investment in different crypto projects such as the $TRUMP and $MELANIA meme coins. Such questions are crucial when his administration tries to establish a friendly crypto regulation framework.
Conclusion
The revelation that Donald Trump and his partners will earn $390 million from WLFI token sales highlights the complex relationship between crypto, politics, and celebrity endorsement. As the digital asset space matures, such instances will continue to shape the conversation surrounding crypto and how to navigate it.
Frequently Asked Questions (FAQs)
Why are Trump’s potential earnings raising eyebrows?
The substantial personal earnings from the WLFI token sales raise questions about Trump’s future political actions and statements regarding his interest in the crypto market.
What are the arguments of the critics?
Critics argue that such significant earnings from token sales by individuals holding political offices could create an unequal playing field, raising concerns about whether their political connections benefited them disproportionately.
Are there any potential risks to such outcomes?
Experts believe that with such significant profits, there was a risk of some investors getting swayed by celebrity endorsement and failing to carry out due diligence, necessitating robust investor protection mechanisms within crypto regulations.
