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Trump family reportedly controls 60% of WLFI, raising red flags over centralization and ethical concerns in DeFi.
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Non-tradable governance tokens and potential political influence spark regulatory scrutiny of Trump-linked crypto project.
Recent reports have stirred controversy over the Trump family’s involvement in World Liberty Financial (WLFI), a decentralized finance (DeFi) platform. This follows CNF’s earlier coverage noting that Trump-backed WLFI’s $336M in crypto activity has fueled speculation ahead of the upcoming White House Crypto Summit.
The latest allegations suggest that former President Trump and his immediate family have secured a substantial financial stake in WLFI, raising serious concerns over potential conflicts of interest and broader implications for the cryptocurrency sector.
Trump Family’s Financial Stake in WLFI
According to a Reuters investigation, the Trump family controls 60% of WLFI and is entitled to 75% of net revenues from token sales—valued at approximately $400 million. They are also reportedly entitled to 60% of the platform’s operational revenue. As stated in the Reuter updates:
A White House spokesperson referred questions about World Liberty to the Trump Organization. The Trump Organization’s chief legal officer and the president’s two older sons, who are executives at the company, did not respond to requests for comment.
However, the company’s legal officer and Trump’s two eldest sons—who are listed as executives—did not respond to media inquiries.
These figures have triggered scrutiny over the centralization of what is claimed to be a decentralized platform, along with the ethical concerns surrounding such a highly concentrated financial arrangement.
Governance Token Controversy
WLFI’s governance tokens, meant to provide voting rights to holders, are reportedly non-tradable, preventing investors from exerting any real influence over platform governance.
This structure has drawn criticism regarding transparencyand raised doubts about how much power is truly vested in the broader token-holder community.
Ethical and Regulatory Concerns
The intersection of political influence and financial gain has prompted concern from both crypto analysts and political critics. The potential for regulatory influence—combined with the Trump family’s major financial interest—has been labeled by some as a conflict of interest.
Moreover, the platform’s lack of operational transparency and the inability for investors to exit their positions have led to increased calls for regulatory oversight.
Implications for the Cryptocurrency Market
Lastly, the WLFI situation underscores the importance of transparency, decentralization, and ethical governance in the DeFi space. These concerns come at a time when the broader crypto market remains volatile.
As of April 1, 2025, Bitcoin (BTC) is trading at $83,075, marking a 1.52% daily increase but a 4.00% decline over the past week.
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