- 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.