World Liberty Financial Under Fire for Alleged Token Swaps and Conflicts of Interest

• World Liberty Financial faces suspicions over crypto token exchanges.
• Conflict of interest with Trump and Justin Sun is questioned.
• WLF denies active sales, claims treasury management.

World Liberty Financial (WLF), a cryptocurrency platform backed by former President Donald Trump, is facing a wave of criticism and questions after reports suggested the existence of token swap agreements with conditions that favor strategic investors. The information indicates that the organization would have offered proposals involving the purchase of at least US$ 10 million in WLFI tokens by blockchain projects. In return, WLF would commit to acquiring the same value in native tokens of these projects, in addition to charging an additional 10% fee on the transaction.

We're making routine movements of our crypto holdings as part of regular treasury management, and payment of fees and expenses and to address working capital requirements. To be clear, we are not selling tokens—we are simply reallocating assets for ordinary business purposes.…

— WLFI (@worldlibertyfi) February 3, 2025

Sources indicate that investments of more than US$15 million could guarantee investors special treatment, classified as “priority” within the organization. The WLF, in turn, maintains that such movements are part of the regular management of its treasury, denying any type of active sale of tokens. “We are simply reallocating assets to meet operational needs and optimize the management of our treasury,” stated a company spokesperson, reinforcing that these practices are common in the management of financial resources.

The WLFI token, valued at $1,5 billion in fully diluted value, is scheduled to launch in Q2025 XNUMX. One of the conditions imposed by the WLF is that these tokens are free of any lock-up period, which increases their attractiveness to investors looking for immediate liquidity.

The situation is further complicated by WLF’s ties to influential figures in the crypto space. The platform’s largest investor is TRON founder Justin Sun, with WLF having made significant investments in projects associated with him, including Wrapped Bitcoin (WBTC) and TRON itself. This close relationship raises concerns about potential conflicts of interest, especially considering Sun’s history in the cryptocurrency space.

Furthermore, the direct connection to the Trump family adds another layer of controversy. It is estimated that 60% of WLF’s equity stake and 75% of the revenue generated from WLFI sales fees are tied to an LLC associated with the Trump family. This data fuels suspicions that the project may be used for purposes beyond the development of decentralized finance solutions.

The WLF currently has a treasury valued at approximately $364 million, with the majority of the funds allocated to Ethereum (ETH), Wrapped Bitcoin (WBTC), and USDC. Despite the substantial investments, the organization’s performance has been negatively impacted by the recent devaluation of ETH, which represents its main market position.

The future of World Liberty Financial remains uncertain as the project prepares for its official launch. Investigations into the transparency of its operations and the nature of its relationships with strategic investors continue to generate debate in the cryptocurrency industry, calling into question the platform’s governance and objectives.