Trump Family Controls 75% of WLFI Revenues—Is This a Riches-or-Rug Scam?

WLFI Crypto (World Liberty Financial) started in September 2024 as a DeFi platform powered by the USD1 stablecoin, inspired by U.S. President Donald Trump. Its aim is to promote the use of stablecoins and decentralized finance by offering a single platform for lending, borrowing, and trading cryptocurrencies.

WLFI has its own token, an ERC-20 governance token on Ethereum. Initially, this token couldn’t be traded and was used only for voting on changes to the platform. However, hints from recent governance proposals suggest that WLFI might soon become tradable, opening up the possibility for public trading. The platform has high-profile ties to the Trump family, adding an interesting twist. Donald Trump is called the “Chief Crypto Advocate,” his sons Don Jr. and Eric are “Web 3 Ambassadors,” and Barron Trump is the “DeFi Visionary.” This connection has generated both excitement and scrutiny, especially with reports that the family controls the platform’s revenues.

Trump Family’s Financial Control Over WLFI Crypto

Reports indicate that the Trump family controls a significant portion of WLFI Crypto’s revenues. According to various sources, they are entitled to 75% of the net revenues from token sales. An article from March 31, 2025, revealed that the Trump family set up WLF Holdco LLC in January 2025, which owns at least 60% of WLFI via DT Marks DeFi LLC, an entity connected to the family. This holding company manages the protocol’s development. Based on the $550 million raised from token sales , the family’s share could amount to approximately $400 million.  The Trump family controls 60% of WLFI’s operating profits once the platform is fully operational, confirming their right to 75% of net revenues from token sales and underscoring their centralised control over key revenue streams.

Legitimate Project with Strong Backing, But Beware of Scams

Research shows that WLFI Crypto is a legitimate project backed by solid evidence. The platform raised over $550 million in two WLFI token sale rounds, involving more than 85,000 KYC-verified participants . It also boasts partnerships with major crypto figures, like Justin Sun, who reportedly invested $75 million in WLFI tokens, as revealed in a court filing cited by the same report.

WLFI’s USD1 stablecoin is fully backed by U.S. cash and cash equivalents, ensuring liquidity and stability, as stated on the official WLFI website. Transparency is a priority the project publishes monthly reserve reports for USD1 and provides its white paper and official communications at worldlibertyfinancial.com. Both CoinGecko and CoinMarketCap list WLFI as a legitimate cryptocurrency, with market data expected soon .

However, the project has faced external challenges: scammers have targeted WLFI investors with fake airdrops and phishing attacks, aiming to steal wallet information. While these incidents don’t directly implicate WLFI itself, they highlight the ongoing risks in the crypto space and the need for caution.

Centralisation Concerns and Risks Surrounding WLFI Crypto

The Trump family’s high level of control over WLFI holding 60% ownership and entitled to 75% of revenues raises serious concerns about centralisation. This goes against DeFi’s core ideals of decentralisation and community governance. Ethical issues have been raised regarding the mix of political power and financial interests, especially amid Trump’s presidential campaign and the family’s deep involvement.

Critics worry that such concentrated control could lead to conflicts of interest, with decisions favouring insiders rather than the wider WLFI community. Additionally, the initial non-transferable status of WLFI tokens limited liquidity, which may have discouraged investors looking for quick profits. Although recent proposals to make the tokens tradable could improve liquidity, this change might introduce new risks, including market volatility and regulatory scrutiny.

A Complex Investment with Big Opportunities and Risks

WLFI Crypto offers an interesting but complicated investment option. The Trump family controls 75% of the revenues from token sales, which raises worries about centralization and potential conflicts of interest. This can affect how the platform is managed and how fair it is. Research shows that WLFI is a real project with strong funding and partnerships. However, investors should be aware of ongoing risks like phishing scams, market changes, and uncertain regulations.

If you’re thinking about investing, it’s crucial to do thorough research. Understand how the project is managed, be wary of unsolicited offers or promises, and always make informed decisions. Manage your risks wisely and consider talking to financial professionals. For more information, visit the official website.

FAQs

1. What is WLFI Crypto?
   WLFI Crypto, or World Liberty Financial, is a DeFi platform launched in 2024, inspired by Donald Trump, offering lending, borrowing, and trading with its USD1 stablecoin and WLFI governance token.
2. Why does the Trump family control 75% of WLFI Crypto’s revenues?
   The Trump family, through DT Marks DeFi LLC and WLF Holdco LLC, holds a 60% stake in WLFI Crypto and is entitled to 75% of net revenues from token sales, potentially worth $400 million, as per Reuters.
3. Is WLFI Crypto a legitimate project or a scam?
   WLFI Crypto appears legitimate, having raised over $550 million with partnerships like Justin Sun’s $75 million investment. However, its centralized control and non-transferable tokens raise concerns about fairness and risks.
4. What are the risks of investing in WLFI Crypto?
   Risks include centralized control by the Trump family, non-transferable WLFI tokens limiting liquidity, market volatility, phishing scams, and potential regulatory scrutiny due to political ties.
5. How can I learn more about WLFI Crypto?
   Visit worldlibertyfinancial.com for official details, review the project’s “gold paper,” and stay cautious of scams by using verified links, as advised on WLFI’s X posts.