Reuters: Trump family controls at least 60% of World Liberty Financial through new holding company

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PANews
03-31
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PANews reported on April 1st that according to Reuters, when World Liberty Financial raised over $500 million, industry experts pointed out that the Trump family gained control of this crypto enterprise and seized most of the funds through governance terms favorable to insiders. The project claimed to be a "DeFi platform" that would allow users to bypass banks and directly use cryptocurrencies to obtain financial services. However, investigations found that the platform has not yet been publicly operational, and the team size is extremely limited.

Nevertheless, World Liberty announced in mid-March that it raised $550 million through the sale of governance tokens. Reuters calculations showed that most of the sales occurred after Trump's victory in November last year, and the WLFI tokens only grant holders the right to vote on project code modifications and cannot be publicly traded. In January, changes to the World Liberty website's fine print showed that the two co-founders, Zak Folkman and Chase Herro, had transferred control to an entity 60% owned by the Trump family. As a result, the Trump family can obtain 75% of the net proceeds from token sales and 60% of the platform's operating revenue. By this calculation, approximately $400 million in funding has been attributed to the Trump family, with only 5% (about $27.5 million) remaining for platform development.

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