Bloomberg investigation published It was revealed on May 12 that Trump family members made nearly $1.55 billion from World Liberty Financial (WLFI) cryptocurrency sales, raising their total wealth by about $660 million after accounting for previously undisclosed transactions — while early retail investors remain locked out of 80% of their holdings as the token trades near all-time lows.
The investigation, based on analysis conducted by intelligence platform Tokenomist.ai at the request of Bloomberg, found that World Liberty Financial sold an additional 5.9 billion tokens to accredited private investors after closing two public fundraising rounds — transactions worth hundreds of millions of dollars that were not publicly disclosed or explained to the project’s broader investor base. The sales came in addition to more than $550 million already raised through public rounds, Bloomberg reports.
Who earned the crypto proceeds?
Under World Liberty Financial’s governance disclosures, DT Marks DEFI LLC — a Trump entity — is entitled to 75% of all proceeds from the WLFI token sale after agreed-upon reserves and expenses, according to a Bloomberg report.
Trump-affiliated parties also directly own 22.5 billion WLFI tokens. World Liberty confirmed the private sales to Bloomberg, describing them as “white glove” transactions with private buyers, but declined to identify the buyers or reveal where the proceeds were directed.
The project was co-founded by members of the Trump and Witkoff families, with Zach Witkoff serving as CEO. Both Donald Trump and Steve Witkoff — who serves as the president’s special envoy to the Middle East — were listed as honorary co-founders on the project’s website, although the page listing the co-founders was later removed. A company spokesperson said the company updates its website regularly, according to a Bloomberg account.
Investors are left holding a loss
The discrepancy between internal results and retail investor experience is stark. Early buyers who participated in the public fundraising rounds are still locked out of 80% of their token holdings, with no mechanism to exit into a market that has moved sharply against them. WLFI traded for less than six cents this week, representing a roughly 85% decline from its all-time high of $0.46, according to BanklessTimes.
Eswar Prasad, a professor at Cornell University, told Bloomberg directly: The Trump family is benefiting from a financial venture that has a blatant conflict of interest in a way that prevents other investors from sharing in the gains.
The project’s prominent external backer has also turned hostile. Justin Sun, founder of the Tron blockchain and lead investor in WLFI, sued the project in April in federal court in San Francisco alleging racketeering and an illegal scheme to seize its tokens — allegations the project’s co-founders deny, Bloomberg reports.
World Liberty also deposited 5 billion of its WLFI tokens into Dolomite, a decentralized lending protocol whose co-founder holds a role at World Liberty, and borrowed approximately $75 million worth of stablecoins against them. Critics cited by Bloomberg have argued that the structure could allow insiders to convert holdings into cash without waiting for unlock periods that could extend years into the future.
WLFI's price trends to the downside on the daily chart. Source: WLFIUSD chart on Tradingview
The investigation represents a critical and uncomfortable moment for the emerging sector’s relationship with political legitimacy. A cryptocurrency venture backed by a sitting president, generating billions for the founder’s affiliated entities while retail investors absorb near-total losses, is exactly the kind of outcome that regulatory critics have long warned the industry is calling for without meaningful disclosure standards and investor protections.
Cover image by Grok, BTCUSD chart by Tradingview
Editing process Bitcoinist focuses on providing well-researched, accurate, and unbiased content. We adhere to strict sourcing standards, and every page is carefully reviewed by our team of senior technology experts and experienced editors. This process ensures the integrity, relevance, and value of our content to our readers.
