World Liberty Financial sinks to record low on news of undisclosed 5.9 billion token sales to private investors
World Liberty Financial's token hit a record low following news of undisclosed 5.9 billion token sales to private investors.Summary
World Liberty Financial, a DeFi venture co-founded by the Trump and Witkoff families, has seen its WLFI token drop to a record low below $0.056. This decline follows reports that the project sold an additional 5.9 billion tokens to private accredited investors without clear disclosure to existing holders.
Governance filings reveal that 75% of net proceeds from token sales flow to DT Marks DEFI LLC, an entity affiliated with President Trump. Meanwhile, early investors face significant liquidity issues due to strict lockup periods, while insiders hold massive amounts of tokens. The project is also facing legal pressure from TRON founder Justin Sun, who filed a lawsuit alleging the existence of a "blacklist" feature capable of seizing assets.
Despite the controversy, the White House claims President Trump has no management role in the venture. Additionally, Steve Witkoff has reportedly divested from the project.
(Source：Crypto Briefing)