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Trump-Backed Crypto Investment Firm, World Liberty Financial Faces $110M in Unrealized Losses

World Liberty Financial (WLFI), a cryptocurrency investment firm backed by former U.S. President Donald Trump, is grappling with $110 million in unrealized losses as the market downturn weighs on its portfolio.

According to Arkham Intelligence, WLFI initially invested $336 million across nine cryptocurrencies, but the portfolio’s value has since dropped to approximately $226 million. The majority of these losses—65%—stem from its Ethereum holdings.

Ethereum, currently trading at around $2,000 as of March 10, was purchased by WLFI at an average price of $3,240, resulting in an estimated $80.85 million loss, equating to nearly 37% of its total investment. Meanwhile, TRON has remained the most resilient asset in WLFI’s portfolio, declining just 5%. Other holdings contributing to the losses include; ETH ($10.27M), WHITE ($5.87M), Movement ($3.5M), and Ondo ($296,000).

World Liberty Financial Investment Acquires More Assets Despite Loss

Despite the downturn, WLFI has continued to make strategic acquisitions. On March 6, the firm purchased $21.5 million worth of Ethereum, Wrapped Bitcoin, and Movement Network tokens. Additionally, it recently announced a partnership with Sui, a blockchain developed by former Meta engineers, to explore new opportunities in decentralized finance (DeFi).

The Sui partnership has sparked speculation, with some industry observers suggesting it signals an expansion into alternative blockchain ecosystems, while others question its true motives. Founded in 2024, WLFI has quickly positioned itself as a significant player in DeFi.

Trump and his close allies reportedly control over 60% of World Liberty Financial Investment – they would have also had a fair share of the loss. Despite recent losses, the firm has attracted strong investor interest, raising $300 million during its January 2025 token sale. 

However, as Trump’s administration pushes for a strategic crypto reserve for the U.S., critics warn that his deepening involvement in the cryptocurrency space could lead to potential conflicts of interest.

The Trump Organization has denied any ethical concerns, stating that WLFI is managed by his children, an independent ethics lawyer, and an external investment firm, with Trump himself having no direct control over its operations.

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