World Liberty Financial, co-founded by the Trump family and Witkoff family members, has recently sold an additional 5.9 billion WLFI tokens to private accredited investors, following two public fundraising rounds that accumulated over $550 million. This transaction was discovered through governance filings analyzed by Tokenomist.ai for Bloomberg and later confirmed by the company itself. Notably, these follow-on sales, valued in the hundreds of millions, were not explicitly disclosed to current investors, raising concerns about transparency.
As per the project’s own reports, a substantial 75% of net proceeds from WLFI token sales are directed to DT Marks DEFI LLC, an entity associated with President Trump and certain family members, which additionally possesses an outright holding of 22.5 billion WLFI tokens.
This situation contrasts starkly with that of early investors, who encounter significant limitations on liquidity. They have been allowed to sell only a small portion of their holdings, while the majority is locked without clear timelines. The project faces scrutiny due to a token freeze, accusations of undisclosed backdoor controls, and substantial losses for investors, leading to rising tensions within the crypto community.
An early backer, Justin Sun, has accused World Liberty of hiding a blacklist feature in its smart contract that could potentially enable the project to freeze or seize token holders' assets. This dispute escalated with Sun initiating a lawsuit against World Liberty.
In April 2026, a governance proposal mandated a minimum two-year lockup period for early investors, followed by a phased unlocking scheme. Those who decline the revised terms may find their holdings indefinitely locked. Founders choosing the vesting framework are required to burn 10% of their token allocation, an action seen as a method to align interests but is controversial.
The governance vote itself has attracted criticism, as on-chain analysis indicates that a mere four wallet addresses held approximately 40% of the voting power related to a proposal that would unlock 62 billion tokens, with more than 40 billion intended for insiders.
Following these findings by Bloomberg, WLFI's value has worsened, dropping below $0.056 and setting a new all-time low according to CoinGecko. In the backdrop of the controversy, the White House insists that President Trump does not manage the venture, with a spokesperson stating that his assets are in a trust administered by his children, thereby eliminating perceived conflicts of interest. Furthermore, Steve Witkoff, the president’s special envoy to the Middle East and father of WLFI’s CEO Zach Witkoff, has reportedly exited the project, which may signal further operational changes ahead.