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WLFI Denies $8M Ethereum Selloff As USD1 Hits 100M Circulation

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  • WLFI denies selling 5,500 ETH amid reports of an $8M dump, calling speculation “incorrect.”
  • The crypto project’s newest stablecoin, USD1, surpasses 100 million tokens in circulating supply on BNB Smart Chain.
  • WLFI partners with Ondo Finance to integrate tokenized real-world assets like USDY and OUSG.

Trump’s pet crypto project, World Liberty Financial or WLFI, has denied reports that it sold 5,500 ETH earlier this week. Earlier, several reports suggested that a wallet address linked to the crypto project (as labeled by Arkham) dumped nearly $8 million worth of ETH when the price dropped to $1,465.

In response, a WLFI spokesperson stated: “Claims that we sold its holdings are completely false. No assets have been sold, and related speculation is incorrect.” Onchain data dated April 9, also showed how the address seemingly belonging to the project bought 67,500 Ethereum at $3,260, resulting in a loss of over $125 million.

WLFI
WLFI Denies $8M Ethereum Selloff As USD1 Hits 100M Circulation 2


Meanwhile, WLFI’s newly launched stablecoin, USD1 have achieved a new miletone. The circulating supply of USD1, has surpassed 100 million tokens on the BNB Smart Chain (BSC). According to data from BscScan, the current supply stands at 103,489,090 USD1.

Back to back, the Defi project has teamed up with Ondo Finance to advance the adoption of tokenized real-world assets and bring traditional finance onchain. WLFI is exploring the integration of Ondo’s tokenized assets into the network as treasury reserve assets, including USDY (only available to non-US persons outside the US) and OUSG.

Ondo and WLFI Partner on Tokenized RWAs

The crypto project also plans to also integrate USDY, OUSG, and tokenized securities from Ondo’s upcoming Global Markets (only available to non-US persons outside the US to the extent legally permitted) into the WLFI platform, enabling seamless borrowing, lending, and margin trading for eligible users.

Through this collaboration, World Liberty Financial plans to become a strategic collaborator in Ondo’s journey to scale Ondo Global Markets, a platform designed to enable the tokenization of traditional financial assets like stocks and bonds. As part of the collaboration, qualifying WLFI users will gain access to Ondo Global Markets’ tokens, offering exposure to thousands of real-world assets, all fully onchain.

Nathan Allman, CEO of Ondo Finance, said, “We’re thrilled to work with World Liberty Financial to bring the benefits of tokenized real-world assets to their platform and users. This collaboration highlights the growing demand for institutional-grade onchain solutions that deliver stability, liquidity, and utility at scale.”

Trump Family Takes Control of $550 Million World Liberty Financial, Crypto Venture

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  • Trump family controls 75% of token sale revenue, $400 million in fees.
  • World Liberty’s governance favors insiders, limiting public participation.
  • Ethical concerns arise over potential conflicts of interest in crypto venture.

The Trump family has completed a takeover of World Liberty Financial, a crypto venture that has raised more than $550 million. The family claims substantial ownership of World Liberty Financial project profits, which has raised questions about the company’s governance structure. Experts warn that this development could indicate a move toward centralized governance in decentralized finance (DeFi).

Trump Family Takes Over World Liberty Financial

World Liberty Financial, which launched in late 2024, seeks to deliver financial services without the need for middlemen. However, the platform has become public and functions with a small team of staff. The project accumulated $550 million mainly from the sale of $WLFI governance tokens by mid-March 2025.

These tokens provide the right to vote on the platform’s future but can not be traded. However, the project’s terms restrict the influence of token holders despite their rights to vote. World Liberty relies on an internal governance model that favours members of the Trump family, raising concerns about decentralization.

In January 2025, the Trump family purchased the venture and replaced co-founders Zak Folkman and Chase Herro. The Trump family controls 60% of the parent entity, WLF Holdco LLC. The Trump family receives a total of 75% of net revenue from all token sales and 60% of its operational profits.

This grants the Trump family control over approximately $400 million of the $550 million raised by the venture. A small share of the collected funds will be invested into the development of the platform. The terms of World Liberty’s governance structure limit participation from public investors or token holders.

World Liberty Sparks Ethical and DeFi Governance Concerns 

World Liberty’s governance structure differs from other major DeFi platforms. Other DeFi platforms allocate their governance tokens to users and venture capitalists to increase user participation. However, World Liberty limits token holder influence on crucial decisions such as modifications to agreements with the Trump family.

The Trump family’s involvement in the venture has sparked multiple ethical issues. The family’s huge control over the project creates potential conflicts of interest. Critics argue the president’s status in the industry could make World Liberty an avenue to exchange political influence or foreign monetary donations.

The project’s investors include high-net-worth individuals who purchase tokens at a minimum of $1 million. The investors include Justin Sun, a well-known crypto entrepreneur, who holds a major stake in the project. Sun has substantially increased his investment in World Liberty since his first stake, which attracts scrutiny over his past legal issues.

Although World Liberty Financial has raised hundreds of millions of dollars, it has not proven operational success. The platform continues to explore the development of a decentralized lending market and a stablecoin linked to the U.S Treasuries. However, internal reviews and audits have sparked doubts about the platform’s readiness to launch.

Trump-Backed USD1 Stablecoin Launch with Big Claims

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  • Trump-linked WLFI launches USD1 stablecoin, backed by US treasuries, audited for transparency, targeting institutional adoption with BitGo custody.
  • CZ warns of stablecoin scams; official token not yet trading. On-chain data shows Wintermute’s involvement in the token testing.
  • USD1’s smart contract, deployed 20 days prior, sees over 10,000 transactions, indicating high activity on BNB Chain

Trump-inspired World Liberty Financial Inc or WLFI, is finally launching USD1, the much antipated dollar-pegged stablecoin on the Ethereum (ETH) and Binance Smart Chain (BSC) with plans to expand to other blockchains shortly.

As per the Medium post, the stablecoin will be redeemable 1:1 for the US dollar (USD), 100% backed by short-term US government treasuries, US dollar deposits, and other cash equivalents. The reserve portfolio will be regularly audited by a third-party accounting firm, to ensure transparency. Zach Witkoff, WLFI co-founder, commented:

USD1 provides what algorithmic and anonymous crypto projects cannot — access to the power of DeFi underpinned by the credibility and safeguards of the most respected names in traditional finance. We’re offering a digital dollar stablecoin that sovereign investors and major institutions can confidently integrate into their strategies for seamless, secure cross-border transactions.

Additionally, BitGo will serve as the custodian of the USD1 reserves, providing institutional clients with access to deep liquidity and trading, all securely held and managed within regulated, qualified custody.

USD1
Trump-Backed USD1 Stablecoin Launch with Big Claims 4

The launch of the stablecoin marks a significant advancement in institutional-ready digital assets, as USD1 prioritizes stability through its conservative approach instead of bringing complex risk factors by competitors, said Mike Belshe, BitGo CEO.

By avoiding complicated yield-generating mechanisms, USD1 offers the clarity and security required for broader institutional adoption, he added.

CZ Warns of Fake USD1

Trump-linked WLFI along with crypto market maker Wintermute has been reportedly testing the dollar-backed stablecoin for quite some time. According to lookonchain data, there were interactions between the contract and the wallet associated with the crypto market maker Wintermute.

The development created a huge frenzy sparking Binance’s former CEO CZ to caution against scammers. He also clarified that the official USD1 is not yet open for trading, alerting users against trusting fraudulent coins bearing the same name.

As per BSCScan, the smart contract was deployed 20 days ago. Since then, the contract has recorded more than 10k transactions, highlighting the significant activity.

Binance Founder Exposes Fake Trump-Linked Stablecoin

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  • Binance’s CZ alerted users to scams after the USD1 launch, stating the official token was not yet trading and to avoid fraudulent versions.
  • On-chain data shows Wintermute’s involvement with the USD1 stablecoin, launched on BNB Chain, amidst reports of Trump-linked connections.
  • Facing US legal issues, CZ expressed willingness to accept a pardon, though the extent of his efforts remains subject to verification.

Binance’s former CEO CZ has warned against scammers after the launch of the USD1 by Trump’s crypto business on the BNB chain. He also clarified that the official USD1 is not yet open for trading, alerting users against trusting fraudulent coins bearing the same name.

Trump-linked WLFI in partnership with Wintermute has been reportedly testing a dollar-backed stablecoin called ‘World Liberty Financial USD1 on Ethereum and BNB Chain. According to lookonchain, there were interactions between the contract and the wallet associated with the crypto market maker Wintermute.

If you check the Wintermute address that was active at this address (https://etherscan.io/address/0xdbf5e9c5206d0db70a90108bf936da60221dc080…), you can see that it is a real Wintermute wallet that actually holds $85M worth.

Binance
Binance Founder Exposes Fake Trump-Linked Stablecoin 6

As per BSCScan, the smart contract was deployed 20 days ago. Since then, the contract has recorded more than 10k transactions, highlighting the significant activity.

The move aligns with Wintermute’s recent announcement, outlining their intention to enter the US market. USD1’s deployment on March 4, has excited the community as it is seen as revival of the Binance chain after a period of downtrend.

Trump’s Crypto Play: Is Binance Involved?

Notably, Binance has expressed its intention to partner with the Trump family either directly or via World Liberty Financial in their proposed business deal. The Trump-backed crypto venture introduced in 2024 will potentially serve as a key element in the deal.

Meanwhile, Binance founder Changpeng Zhao is pushing for clemency with the Trump administration after experiencing legal woes in the United States.

As reported by TronWeekly, CZ, expressed readiness to accept a pardon from the current US administration although he denied having any discussions with Trump’s close aides. Previously, reports of CZ’s business dealings with Trump’s WLFI created quite a stir. The Binance ex CEO has vehemently denied any such business dealings, accusing media of “trying to create a story”.