World Liberty Financial, the prominent crypto initiative linked to the Trump family, is under the microscope once again following a recent revelation regarding the undisclosed sale of billions of WLFI tokens to private investors.
According to a report, the Trump family-affiliated venture attracted scrutiny after it was disclosed that they made hundreds of millions from these secretive transactions. These transactions came on the heels of two earlier fundraising rounds that amassed around $550 million between October 2024 and January 2025, and an additional 5.9 billion WLFI tokens allegedly sold off to accredited private investors.
The report indicates that these undisclosed sales potentially raked in hundreds of millions of dollars, with estimates suggesting they could have generated around $295 million based on the token price of $0.05 during the second round of fundraising. Tokenomist.ai uncovered these sales while analyzing governance filings of World Liberty Financial, which highlighted a significant increase in the number of tokens allocated to the founders and associated parties without adequate explanations.
Confirming the sales, World Liberty Financial described them as ‘white glove’ transactions involving private buyers but declined to reveal the identities of those involved. Notably, 75% of WLFI token sale proceeds have reportedly been directed to DT Marks DEFI LLC, an entity tied to former President Donald Trump and certain family members who control a staggering 22.5 billion WLFI tokens.
The Trump family’s venture has seen its own share of volatility, particularly as WLFI has recently hit record lows amid growing concerns over its management. The legal saga escalated when Justin Sun, founder of Tron and one of WLFI’s largest investors, initiated a lawsuit against the project. Sun alleges wrongful actions by the World Liberty team, including the freezing of his tokens and revoking of his voting rights, following his substantial $45 million investment in 3 billion WLFI tokens.
Last month, tensions flared further as Sun denounced the project’s governance proposal that seeks to extend token lock-ups for early investors by an additional two years, branding it a tool of coercion that risks locking investors out of their holdings indefinitely.
Adding fuel to the fire, the project faced backlash for depositing 5 billion WLFI tokens into the lending protocol Dolomite, borrowing approximately $75 million against them.
As the controversy unfolds, WLFI’s market position has deteriorated significantly, recently plummeting to an all-time low of $0.054, representing an alarming 83% drop from its peak of $0.33 on September 1, 2025, leaving numerous investors in a precarious situation.
Experts are expressing their concerns over the implications of these events. Cornell University professor Eswar Prasad remarked on the unsettling nature of the Trump family profiting from this venture, particularly in the face of evident conflicts of interest and the current hurdles placed before other investors vying to share in the potential gains.
