What Happened?
The Trump family has acquired control of World Liberty Financial, securing 75% of the net revenue from the project’s token sales and 60% of its operating income, with projections indicating potential earnings in the hundreds of millions of dollars. However, the tokens associated with this project are not tradable and do not grant public investors any rights to dividends, raising concerns about its high level of centralization and exclusivity.
In addition to World Liberty Financial, the Trump family has also ventured into meme coin issuance and Bitcoin mining. These actions have not only rapidly increased their wealth but have also closely tied the personal interests of the presidential family to the emerging cryptocurrency industry.
The Trump family’s business activities in the cryptocurrency sector stand in stark contrast to Trump’s promise to become the “Crypto President” and promote regulatory relaxation. Critics argue that this could lead to conflicts of interest and question whether policy decisions might be influenced by the growth of personal wealth. Additionally, the Trump family claims that their shift to cryptocurrency is a response to “cancel culture,” providing context for their motivation to enter this field.
Trump Family’s Crypto Rush! Uncovering Their “Money Game” and Conflicts of Interest
The emergence of former U.S. President Trump and his family in the cryptocurrency world has not only brought them considerable wealth but has also raised questions about potential conflicts of interest. According to reports from media outlets such as Reuters and CNBC, the Trump family had already been deeply involved in the cryptocurrency sector prior to Trump’s election, accumulating vast wealth through various crypto-related businesses and triggering potential conflicts of interest and regulatory controversies.
World Liberty Financial is one of the key ventures of the Trump family in the cryptocurrency domain. Established in 2024, the company aims to create a decentralized finance (DeFi) platform that allows financial services to be carried out using cryptocurrency without intermediaries. Although the platform has not yet officially launched and has a small staff, World Liberty has raised over $550 million through the sale of its governance token, $WLFI. Most of this fundraising occurred after Trump’s victory in November last year, according to calculations by Reuters.
Notably, the Trump family has acquired a significant amount of control within World Liberty. According to changes in the terms on the World Liberty website, an entity owned by the Trump family holds 60% of the shares in WLF Holdco LLC, which controls World Liberty Financial Inc. This arrangement allows the Trump family to receive 75% of the net revenue from token sales and 60% of revenue from World Liberty’s operations once the core business is launched.
According to Reuters’ estimates, this arrangement currently gives the Trump family the right to approximately $400 million in fees. After the co-founders take their respective shares, only 5% of the $550 million raised by World Liberty will remain for platform development.
Many industry experts have expressed concerns about World Liberty’s governance structure. Jim Angel, an associate professor at Georgetown University, pointed out that the governance token $WLFI is non-tradable, and token holders cannot vote to share profits, making the economic benefits of the tokens unclear. David Krause, a finance professor at Marquette University, also stated that this structure makes it difficult for ordinary investors to profit. Critics have warned that the Trump family’s deep involvement could lead to potential conflicts of interest, especially considering Trump’s promise to become the “Crypto President” and relax regulations in the cryptocurrency sector.
Cryptocurrency Earnings and Political Influence
In addition to World Liberty, the Trump family has also engaged in other cryptocurrency projects. For instance, a meme coin promoted by Trump has generated at least $349 million in costs for entities associated with the president. Moreover, Trump’s sons, Eric Trump and Donald Trump Jr., co-founded a Bitcoin mining company called American Bitcoin with the CEO of Hut 8.
Eric Trump stated that their family business faced the impact of “cancel culture,” which prompted them to turn to the cryptocurrency sector. He believes that the Trump family has been marginalized and suppressed by mainstream society (especially traditional financial institutions) due to their political stance or related controversies, a phenomenon he refers to as the impact of “cancel culture.” He even mentioned in an interview with CNBC that his family is “possibly the most canceled company on Earth.”
The latest asset disclosures indicate that Trump’s cryptocurrency investments have yielded significant returns in 2024. His shares in World Liberty Financial reportedly earned him around $57 million, making it one of the Trump family’s most profitable investments last year. Additionally, licensing agreements related to NFT collectibles generated $1.2 million in revenue. First Lady Melania Trump also earned $217,000 through licensing fees for a digital token.
These cryptocurrency earnings, combined with Trump’s income from other traditional businesses (such as luxury hotels, golf clubs, and real estate), brought his total income in 2024 to at least $622 million, with a net worth of at least $1.4 billion. His shares in the social media company Trump Media & Technology Group are currently valued at around $2 billion, likely representing the largest source of his net worth.
However, Trump’s deep involvement in the cryptocurrency sector has also raised serious questions about conflicts of interest. As president, Trump would simultaneously be a major participant in the cryptocurrency industry and its highest decision-maker. Government ethics experts and political critics argue that this could lead to influence trading, especially when Trump advocates for loosening regulations on the cryptocurrency industry.
Ross Delston, a former U.S. banking regulator, pointed out that individuals purchasing $WLFI tokens might gain political advantages, potentially making them a “perfect tool” for foreign governments to funnel money to the president. Although the Trump family claims to have taken measures to avoid conflicts of interest (such as placing their business interests in a trust managed by their children and hiring ethics advisors), this dual role remains controversial.
The Trump family’s actions in the cryptocurrency sector have not only brought them considerable wealth but have also closely linked this emerging asset class to the highest political power in the United States, with its impact and potential controversies likely to remain in focus.
References: Reuters, CNBC, NY Times