In a surprising move within the cryptocurrency sector, the Trump family has quietly taken control of World Liberty, a crypto firm that raised $550 million through the sale of non-tradeable governance tokens. Despite these tokens offering no profit-sharing or liquidity, the Trump family is now entitled to 75% of the revenue, raising concerns about decentralization, governance, and investor transparency.
World Liberty’s Bold Vision and Token Sales
World Liberty (WL) emerged in late 2024, branding itself as a decentralized finance (DeFi) initiative aimed at disrupting traditional financial systems. The firm successfully raised over $550 million from investors purchasing $WLFI governance tokens, which promised voting rights but lacked tradability or direct financial benefits.
Unlike typical crypto tokens that appreciate in value based on market demand, $WLFI tokens cannot be sold, transferred, or traded on exchanges, limiting their appeal to speculative investors. Yet, despite these restrictions, World Liberty’s marketing strategy attracted substantial capital.
Trump Family’s Acquisition: A Centralized Shift in DeFi?
By January 2025, the Trump family, through their entity WLF Holdco LLC, acquired 60% ownership of World Liberty, effectively controlling 75% of all token revenues—an estimated $400 million from the initial raise. Additionally, they hold 60% of future operational revenues, positioning them as the primary beneficiaries of the project’s financial success.
This acquisition has drawn sharp criticism from DeFi proponents, who argue that it contradicts the principles of blockchain decentralization. By consolidating control within a single powerful entity, World Liberty now operates more like a traditional corporate structure rather than a community-driven crypto project.
Ethical and Regulatory Implications
The Trump family’s involvement in World Liberty raises ethical and regulatory concerns, particularly given Donald Trump’s influence in U.S. politics. Crypto regulations remain a hot topic among lawmakers, and this move could potentially attract scrutiny from regulatory bodies such as the SEC and CFTC.
Furthermore, investors are questioning the transparency of World Liberty’s financial model, as token holders do not receive dividends, profit-sharing, or resale options. With the Trump family extracting direct financial benefits while limiting liquidity for token buyers, concerns over fairness and investor protection have escalated.
What’s Next for World Liberty?
Despite raising substantial capital, World Liberty has yet to launch any major DeFi product or service, leaving its long-term viability uncertain. With the Trump family now at the helm, the project’s future will depend on how it navigates regulatory challenges, community trust, and the broader adoption of its financial model.
This development serves as a cautionary case for crypto investors, highlighting the importance of due diligence in DeFi projects—particularly those with high-profile political figures involved.
Will World Liberty fulfill its promises, or is it another centralized entity disguised as DeFi? Time will tell, but for now, the Trump family remains in control of one of the most controversial crypto firms in recent history.
Nikolai Carter
