YEREVAN (CoinChapter.com) — President Donald Trump and his family receive most of the WLFI revenue, according to a new report by Reuters. The report says the Trump family is entitled to 75% of WLFI token sale proceeds, or about $400 million, and 60% of other WLFI income.
The project, World Liberty Financial (WLFI), launched its WLFI token and Trump stablecoin, USD1, at the end of 2024. Earlier rumors linked Binance to WLFI, but no evidence confirms the crypto exchange’s involvement. Still, WLFI completed a large token sale.
Only 5% of WLFI proceeds support the platform’s development, Reuters says. The rest is split between the Trump family and other WLFI co-founders. Buyers of the WLFI token cannot resell their tokens, and their voting or governance rights remain unclear.
WLFI Token Sale Raises Conflict of Interest Concerns
The WLFI token sale raises potential concerns about a Trump conflict of interest, as the revenue model gives his family a direct financial stake. The Trump WLFI relationship is under scrutiny, especially as the token sale brought in hundreds of millions of dollars.
USD1, the Trump stablecoin linked to WLFI, adds further complications. WLFI claims to back it with cash and equivalents, but part of the reserve includes $111 million in unrealized losses from crypto investments. The company also says it will use “other cash equivalents,” without further details.
The Trump crypto connection coincides with his reported plans to restructure financial regulatory agencies. If WLFI tokens fall under those same agencies, those changes could affect oversight.
Former Regulator Flags WLFI Token As High-Risk
Ross Delston, a former U.S. financial regulator, said WLFI presents a major risk.
“You’ve got the guy in charge who is responsible for his own regulation,”
Delston told Reuters. He added foreign entities could use WLFI tokens to route money directly to President Trump.
The Trump WLFI setup gives the Trump family large returns, while retail buyers are locked into non-resellable tokens. That structure has drawn attention from public figures.
Ethereum co-founder Vitalik Buterin previously warned about political meme coins like TRUMP, saying they can become tools for misuse. The WLFI token shows similar patterns. Buyers have limited control, and insiders collect large profits.
Senators Investigate Trump Crypto and WLFI Proceeds
A few U.S. Senators are now looking into Trump’s crypto ties to WLFI. However, the report says weakened federal agencies may not have the power to investigate Trump’s conflict of interest cases effectively.
WLFI’s structure, including how much WLFI revenue is sent to the Trump family, stands out in the crypto sector. Reuters noted that such a financial setup is uncommon, especially for someone running for or holding public office.
The WLFI proceeds, amounting to hundreds of millions of dollars, raises additional questions. Most of the value did not go into the WLFI platform. Buyers face unclear rights and restrictions, while the Trump family receives the majority of income from the WLFI token sale.
