Trump Family Could Pocket $15 Million from World Liberty Financial Crypto Project

Trump’s Cryptocurrency Project Raises Concerns Over Fund Allocation

President-elect Donald Trump has stirred controversy by backing a cryptocurrency initiative, World Liberty Financial, which promises to direct 75% of its raised funds to the Trump family.

This project, unveiled during Trump’s presidential campaign, has drawn scrutiny from critics who see it as an avenue for personal enrichment rather than technological advancement.

The project’s proprietary token has been marketed as an investment opportunity, though it offers no revenue-sharing potential and remains illiquid unless its terms are altered.

The project has yet to launch, but its promotional campaign has already made headlines.

Trump’s sons described the venture as an effort to “make finance great again,” but many observers argue it is simply a financial conduit benefiting the family.

Trump’s sons – Donald Trump Jr. (left) and Eric Trump (right)

Trump with his youngest son, Barron Trump

The tokens have attracted interest from individuals seeking influence, given their direct financial link to the President-elect’s family.

Justin Sun’s $30 Million Purchase Bolsters the Project

On 25 November 2024, Justin Sun, the founder of TRON, announced his purchase of $30 million worth of World Liberty tokens.

This investment pushed the project over its fundraising threshold, guaranteeing the Trump family at least $15 million, as specified in the project’s “gold paper.”

In an interview from Hong Kong where he stays, Sun defended his decision, stating,

“World Liberty Financial can be a beacon to move forward the whole blockchain industry in the US.”

Sun framed his investment as a gesture of support for the American blockchain sector, which he claimed has been hindered by the SEC’s stringent regulatory measures.

Sun’s announcement raised eyebrows, particularly as he faces a lawsuit from the US Securities and Exchange Commission (SEC) for allegedly defrauding investors through price manipulation of his cryptocurrency, TRON.

The following day, the project announced that Sun has joined the team as an advisor.

A Project Designed to Benefit the Trump Family

Despite its marketing as a blockchain venture, World Liberty Financial has been criticised for its token structure.

Investors contribute funds without gaining any tangible share of revenue or resale opportunities, unless specific terms are altered.

Instead, the majority of the funds flow directly to the Trump family.

This arrangement has been compared to past avenues of financial influence, such as renting rooms in Trump hotels, with some arguing that the cryptocurrency is a more direct mechanism.

The project’s timing, coinciding with Trump’s political ascension, raises questions about its purpose.

Critics argue it offers a convenient way for businesses and individuals to curry favour with the incoming administration.

The Changing Landscape of US Crypto Regulation

Sun’s optimism about World Liberty aligns with broader shifts in US crypto policy.

Reports suggest that Paul Atkins, a seasoned financial regulator known for his favourable stance on digital assets, is a leading candidate to replace SEC Chair Gary Gensler.

Gensler’s tenure has been marked by aggressive enforcement actions, which some in the industry view as overly restrictive.

The cryptocurrency sector poured $135 million into the 2024 election cycle, making it the largest-spending industry.

Analysts expect this influence to result in a more favourable regulatory environment under the new administration.

Such changes could bolster ventures like World Liberty Financial while reshaping the broader US blockchain landscape.

Tokens Still Available Despite Criticism

As of now, World Liberty Financial has 16.363 billion tokens available for 1.5 cents each.

Despite the criticism surrounding the project, Sun’s investment signals that others may follow suit.

For now, the venture continues to spark debate about the intersection of cryptocurrency, politics, and financial ethics.