World Liberty Financial, a Trump-backed cryptocurrency project, borrowed approximately $75 million in stablecoins on the Dolomite DeFi protocol using billions of its own WLFI governance tokens as collateral, triggering a 12% price drop to record lows in April 2026. The project then withdrew large portions of assets from Dolomite's liquidity pool, leaving it nearly depleted and causing other depositors to face difficulties retrieving their funds. Concerns intensified after revelations that one advisor serves both World Liberty Financial and Dolomite, raising questions about insider access and conflicts of interest. The WLFI token now trades 48% below the $0.1507 average price at which the project spent $65.58 million repurchasing 435.3 million tokens over six months, creating substantial paper losses for the treasury.
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