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You are here: Home / Cryptocurrency News / World Liberty Financial Faces Backlash After 5.9 Billion Token Sale Revelation

World Liberty Financial Faces Backlash After 5.9 Billion Token Sale Revelation

What to know:

  • World Liberty Financial sold an additional 5.9 billion tokens following the collection of over $550 million from investors.
  • Approximately 75% proceeds are allocated to the DT Marks entity holding 22.5 billion tokens, 40% voting concerns.
  • Governance proposal to lock up tokens for two years was adopted, World Liberty Finance token declined $0.05381 (-9.68%) with $262.30M volume.

By Bena Ilyas | Edited By Ammar Raza,May 2, 2026, 1:00 PM

World Liberty Financial Faces Backlash After 5.9 Billion Token Sale Revelation

World Liberty Financial (WLFI), a decentralized finance project tied to the Trump and Witkoff families, has reportedly raised additional funding through sales of its tokens amounting to 5.9 billion. The company had previously conducted two rounds of public funding, generating above $550 million each.

The undisclosed follow-on sales were identified through governance filings analyzed by Tokenomist.ai on behalf of Bloomberg and later confirmed by the company. Reports indicate the additional token allocations, worth hundreds of millions of dollars, were not clearly communicated to existing investors during or after fundraising processes.

Also Read | Hedera (HBAR) Falling Wedge Formation Hints at Possible Reversal Rally to $0.22

World Liberty Financial Token Sales Allocation

Based on the project documentation, about 75% of the net proceeds from the sale of World Liberty Financial tokens will be invested in DT Marks DEFI LLC, which has ties to the former US president and other members of the Trump family. Also, DT Marks DEFI LLC reportedly owns 22.5 billion tokens of the project.

Furthermore, the earliest investors of the tokens are expected to have their funds locked in the tokens with no clear timeline for when they will gain access to them. In addition to this, the investors’ frustrations have continued to increase due to the poor performance and lack of liquidity in the tokens.

World Liberty Financial Governance Lockup Proposal Approved

In April 2026, a governance proposal was adopted requiring a minimum two-year lockup period for investors, followed by the phasing in of the release of tokens to such individuals.

On-chain data suggests that four wallets control over 40% of the voting power. Additionally, allegations from TRON founder Justin Sun claim the presence of a blacklist function enabling asset freezes, prompting legal action against the project.

Investors who refuse to agree to the conditions set in the governance proposal may lose their tokens, while founders agreeing to the conditions are required to burn 10% of their token allocation. The proposals have led to a decline in sentiment for the World Liberty Finance token.

Market sentiment has weakened following these developments. World Liberty Financial’s price declined to approximately $0.0557, reflecting a 9.68% drop in 24 hours, alongside a trading volume of $262.30 million. The token also recorded a new all-time low, signaling growing investor caution.

WLFI price chart
Source: TradingView

The White House has stated that Donald Trump does not directly manage the project, noting his assets are held in a trust overseen by his children. Separately, Steve Witkoff has reportedly exited involvement, while another Trump-linked token, TRUMP, continues facing scrutiny despite ongoing volatility.

This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.

Also Read | Solana Moves Sideways as Support Holds, Eyes $88–$90 Resistance Target

Filed Under: Cryptocurrency News

About Bena Ilyas

Bena Ilyas is a Global News Correspondent and Market Analyst at Tronweekly with over four years of experience covering global cryptocurrency, blockchain, and Web3 developments. She has written 1,000+ articles for leading crypto news platforms, reporting on Bitcoin, Ethereum, altcoins, DeFi, and global crypto regulation, alongside Web3 trends, Layer 2 ecosystems, and AI-driven crypto use cases. Her work is based on verified sources and fact-based reporting for global market participants.

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