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Trump Family Reduces Crypto Stake Amid Controversies
In a notable shift within the cryptocurrency landscape, DT Marks DEFI LLC—an entity associated with former President Donald Trump—has decreased its shareholding in World Liberty Financial (WLF) from 60% to 40%. This follows earlier cuts from an original 75% stake, as reported by Forbes.
World Liberty Financial, launched during Trump’s 2024 presidential campaign, has garnered attention for selling non-resalable tokens. Notably, a significant portion of the proceeds—75% after the initial US$30 million (around AU$46 million)—is earmarked for Trump and his family. The ownership structure of the venture involves multiple Delaware-based entities associated with Trump’s children.
A Series of Strategic Divestments
Earlier this year, following a robust US$200 million (AU$308 million) token sale in January, the company adjusted its ownership stake. By March, total sales had impressively reached US$550 million (AU$847 million). Despite the successful token sales, concerns linger over the ethical implications of Trump’s involvement in the cryptocurrency market, with critics labelling it a potential conflict of interest.
Steven Levitsky, a Harvard University political scholar, has been vocal in condemning Trump’s activities within the crypto sector. He described the former president’s actions as "one of the largest displays of government corruption in modern history."
Growing Criticism of Trump’s Crypto Ventures
The criticisms surrounding Trump’s crypto ventures have intensified, particularly in regard to his association with certain key players in the industry. Notably, Trump’s memecoin and stablecoin venture has drawn scrutiny, especially considering the dinner invitations extended to significant investors. A controversial figure in this space is Justin Sun, founder of the Tron blockchain, who faces fraud charges from the U.S. Securities and Exchange Commission. Sun has made significant investments in Trump’s memecoin and WLF, although these charges have recently been paused.
In March, World Liberty Financial introduced a USD-pegged stablecoin, which attracted a remarkable US$2 billion (AU$3.08 billion) investment pledge from a company in the UAE. Should the performance of Trump’s crypto venture mirror that of Circle—whose initial public offering saw its valuation nearly triple—his cryptocurrency enterprise could potentially be valued at US$1.7 billion (approximately AU$2.6 billion).
The Future of Trump’s Crypto Involvement
Amidst these developments, the Trump Organization has yet to publicly comment on the recent reduction of its stake in the cryptocurrency venture. This ongoing drama unfolds against the backdrop of broader US foreign policy considerations, particularly regarding tensions with Iran. As Trump hinted at a decision soon regarding potential military involvement, the implications of his financial dealings in the cryptocurrency space continue to garner significant attention from both critics and supporters alike.
The intertwining of Trump’s political and financial legacy represents a complex landscape that will likely evolve as the cryptocurrency market itself continues to expand. As the situation develops, observers will be keenly watching both the performance of World Liberty Financial and the broader implications of Trump’s continued engagement with the crypto industry.
