World Liberty Financial, a cryptocurrency company co-founded by President Trump's sons and associates, received a $100 million investment from Chinese businessman Guren 'Bobby' Zhou, who was arrested in Britain in 2021 for money laundering. Up to $75 million from the investment reportedly went to Trump and his sons.
Trump-backed World Liberty Financial has proposed burning up to 4.52 billion tokens (10% of insider allocation) and implementing 2-5 year vesting schedules for 62.3 billion locked tokens. The proposal has drawn harsh criticism from major investor Justin Sun, who called it an 'absurd governance scam.'
Trump-backed World Liberty Financial's WLFI token plunged to record lows after Justin Sun publicly accused the project of hidden blacklist backdoor controls in its token contract. WLFI threatened legal action, calling Sun's claims 'FUD.'
WLFI token fell 12% to a record low after the Trump-backed project used billions of its own tokens as collateral to borrow $75 million in stablecoins on DeFi platform Dolomite, triggering concerns over insider access and depositor risks.
World Liberty Financial deposited 5 billion of its own WLFI tokens as collateral on Dolomite to borrow $75 million in stablecoins, which were then sent to Coinbase Prime. The move pushed the lending pool to 100% utilization and triggered a 12% token price drop to record lows.
