Seeing this report, I also came across a Bloomberg article.
The Bloomberg report is very detailed; the original article is here: bloomberg.com/news/articles/20...… Here are some key issues:
1. Privately issued 5.9 billion tokens without informing early investors.
This is called "diluting shareholder equity" in traditional finance, which is already unethical in the crypto world, let alone a presidential family project. http:/Tokenomist.ai The abnormal increase in token quantity was only discovered by comparing governance documents; the project team didn't disclose it at all.
2. 75% of profits went to Trump-related entities.
DT Marks DEFI LLC took 75% of the token sale proceeds, plus hundreds of millions of dollars from private sales flowing to "founder-related entities"—basically using the project as an ATM.
3. Investors are locked up and unable to exit. Early investors bought in at 5 cents, and now can only sell 20%, with the remaining 80% locked. WLFI has already fallen below 6 cents, and the project hasn't even provided a timetable for unlocking. Traditional VC investments have clear vesting schedules, making this "lock in first, then talk" approach extremely opaque.
4. Conflicts of interest are impossible to clarify. Witkoff, the Middle East envoy, claims to have "spun off" WLFI, but the project recently deleted the co-founder's page, making even the founder's identity unclear. The White House says Trump's assets are managed by his children and there are no conflicts of interest—no one in the crypto community believes this.
In reality, this project is essentially a token project that monetizes political influence, with little to do with genuine crypto building. With $550 million in funding plus hundreds of millions more issued privately, most of the money went into the pockets of related parties, while investors are locked up as exit liquidity.
Impact on the market: This type of news will make institutions and retail investors more wary of "political concept coins," potentially suppressing sentiment in the entire meme/political token sector in the short term.
Furthermore, given the recent standoff between Sun Ge and wlfi, it seems Sun Ge's lawsuit is legal, well-founded, and has a high chance of success.
Justice will prevail; let's wait and see.
@justinsuntron @HTX_Molly
twitter.com/MEJ50749/status/20...
