Trump’s $3.5B DeFi Project Sparks Political Controversy

World Liberty Financial represents one of the most ambitious crypto ventures associated with the Trump family, positioning itself as a quintessential DeFi project built on the Aave protocol using Ethereum blockchain technology. The platform, announced by Eric Trump in August 2024, aims to “keep the dollar digital” and provide “loans for institutions and everyday users” while promising to “unlock financial access for all” by replacing traditional banking limitations with open, on-chain infrastructure. Despite these lofty goals, the platform remains unreleased as of October 2025, operating in a highly experimental sector of the crypto industry that has been historically plagued by hacks and scams.

The project’s core components include its native token WLFI, which has achieved a market capitalization of $3.56 billion, ranking it as the 43rd largest cryptocurrency according to CoinGecko data. WLFI is available on major exchanges including Binance, Coinbase, and OKX, providing widespread accessibility to investors. Complementing this is the project’s USD1 stablecoin, which operates on both Ethereum and BNB Chain and is pegged to the U.S. dollar. Stablecoins like USD1 serve as crucial components of the DeFi economy, enabling traders to swiftly enter and exit digital asset transactions without relying on traditional banking systems.

President Trump is listed as “co-founder emeritus” on the World Liberty Financial website, indicating his formal departure from active involvement since taking office in January, though his three sons—Eric, Donald Jr., and Barron—remain actively engaged. The Trump family’s financial stake in the project has proven enormously lucrative, with their net worth growing by over $6 billion when WLFI tokens began trading in September. This substantial gain contributes significantly to President Trump’s approximately $1 billion in crypto venture profits as of October 2025, highlighting the project’s financial magnitude compared to his other crypto initiatives like the Official Trump (TRUMP) meme coin, which WLFI surpasses by more than two and a half times in market capitalization.

The project’s leadership extends beyond the Trump family to include DeFi builders Chase Herro and Zak Folkman, along with Zach Witkoff—son of longtime Trump ally Steve Witkoff, who serves as White House special envoy to the Middle East and is also listed as a “co-founder emeritus.” This interconnected network of family and political associates has raised questions about the boundaries between personal financial interests and public office, particularly given the substantial wealth generated through the WLFI token’s market performance.

Democratic lawmakers have intensified their criticism of World Liberty Financial and President Trump’s broader crypto ventures, citing potential conflicts of interest and corruption concerns. Senator Elizabeth Warren specifically targeted a $2 billion investment from Abu Dhabi-based sovereign wealth fund MGX into Binance that utilized the USD1 token, characterizing the transaction as “shady” during May 2025 hearings. This criticism reflects broader unease about the intersection of political influence and cryptocurrency ventures, particularly those with direct ties to sitting administration officials and their families.

Prominent House Democrats have formally requested the Treasury Department provide access to all suspicious activity reports (SARs) related to Trump’s digital asset projects, including World Liberty Financial. These requests indicate growing institutional concern about the transparency and regulatory compliance of crypto ventures associated with political figures. President Trump has repeatedly dismissed these concerns, stating he “hasn’t looked” at the profits generated by his family’s involvement in crypto ventures, though the substantial financial gains and ongoing family participation continue to fuel political controversy.

The controversy surrounding World Liberty Financial underscores broader tensions between the rapidly evolving DeFi sector and traditional political accountability mechanisms. As Democratic lawmakers push for greater transparency and regulatory oversight, the project continues to operate within a regulatory gray area characteristic of many DeFi initiatives, balancing ambitious financial innovation against increasing political scrutiny and ethical questions about the appropriate boundaries for political figures’ involvement in cryptocurrency ventures.