Bitcoin News Today:

A polygon developer has leveled accusations against a cryptocurrency project linked to former U.S. President Donald Trump, alleging fraudulent practices. The project, which is associated with the Trump family’s broader crypto endeavors, includes a stablecoin and digital token, and is now under scrutiny for potential misconduct.

The developer's allegations focus on the company’s governance and token structures, suggesting that the firm is centrally controlled by the Trumps and their associates. According to a report, the Trump family holds nearly a quarter of the governance tokens, giving them a de facto veto power over governance decisions. The tokens, which were recently made public, have reportedly generated significant paper wealth for the family, with estimates reaching as high as $5 billion. This wealth is now considered the family's most valuable asset, surpassing their real estate holdings [2].

World Liberty Financial, the firm in question, was co-founded by Trump and his sons, as well as top diplomatic negotiator Steve Witkoff and his son. The company recently launched a digital asset, the WLFI token, and operates a stablecoin called USD1, which it claims is an upgrade to the U.S. dollar for facilitating cross-border transactions. The USD1 stablecoin is currently being utilized by an Emirati-backed investment firm, MGX, according to a CNN report. The stablecoin is hosted on Binance, a major exchange whose CEO is currently seeking a presidential pardon [3].

The Trumps’ crypto expansion has also extended into a bitcoin mining venture, American Bitcoin, co-founded by Eric Trump. The company went public on the Nasdaq and reportedly generated a half-billion-dollar paper gain for Eric Trump [3]. In addition, the publicly traded media company DJT, which runs the social media platform Truth Social, is in the process of pivoting to a digital asset treasury, accumulating large volumes of Cronos, a different cryptocurrency [3].

Despite the allegations of fraud, the White House has maintained that neither the president nor his family have engaged, or will engage, in conflicts of interest. Karoline Leavitt, the White House press secretary, dismissed media attempts to fabricate conflicts as “irresponsible” and reinforced public distrust in the media [2]. The Trumps’ approach to crypto has shifted from what was initially seen as a cash grab—such as with the $TRUMP meme coin and Trump-themed NFTs—to a more structured and ostensibly legitimate business model [2].

The Trumps’ involvement in the crypto space has not gone unnoticed by critics, including prominent investors who have previously criticized the $TRUMP coin for lacking utility and being more of a speculative gamble than a sound investment [2]. However, the recent moves by the Trump family into stablecoins and publicly traded crypto ventures may allow them to present a more credible face to the industry. The strategic use of Nasdaq listings and governance structures could help legitimize their operations in the eyes of investors, even as questions about transparency and conflict of interest remain [2].

Source: [1] Polygon (https://www.polygon.com/) [2] The Atlantic (https://www.theatlantic.com/technology/archive/2025/09/trump-crypto-world-liberty-financial/684130/) [3] CNN (https://www.cnn.com/2025/09/03/politics/crypto-trump-bitcoin-wlfi-stablecoin-analysis)