World Liberty Financial, the DeFi venture co-founded by the Trump and Witkoff families, has sold an additional 5.9 billion WLFI tokens to private accredited investors without clearly disclosing the sales to existing holders.
The transactions, uncovered through governance filings by Tokenomist.ai on behalf of Bloomberg, come after the project raised over $550 million in two public fundraising rounds.
Under the project's own disclosures, 75% of net WLFI token sale proceeds flow to DT Marks DEFI LLC, an entity affiliated with President Trump and certain family members. That entity also holds 22.5 billion WLFI tokens outright.
Meanwhile, early investors face limited liquidity. They have been permitted to sell only a fraction of their holdings, with the majority locked without clear timelines. A governance proposal approved in April 2026 imposes a minimum two-year lockup on early buyers, with phased unlocking over subsequent years. Investors who reject the new terms risk indefinite lockups.
The project is also facing legal pressure. Tron founder Justin Sun, an early WLFI backer, has filed a lawsuit accusing the project of concealing a blacklist feature in its smart contract that allows it to freeze or seize token holders' assets.
The governance vote itself has drawn sharp criticism. On-chain analysis suggests just four wallet addresses controlled roughly 40% of voting power on a proposal to unlock 62 billion tokens, over 40 billion of which were earmarked for insiders.
WLFI token slid to a new all-time low under $0.056 on the news.
The White House maintains President Trump has no role in managing the venture. A spokesperson said Trump's assets are in a trust managed by his children, adding there are no conflicts of interest.
Steve Witkoff, the president's special envoy to the Middle East and father of WLFI's CEO, has reportedly divested from the project.
Meanwhile, another Trump-backed token, Official Trump (TRUMP), a Solana-based meme coin, hit a new all-time low today, trading at around $2.3, down roughly 97% from its record high.