Trump Family's WLFI Plunges as Buybacks Clash with Whales and Regulatory Probes

World Liberty Financial (WLFI), a decentralized finance (DeFi) platform linked to U.S. President Donald Trump and his family, experienced a sharp price decline following its token launch in September 2025. The WLFI token dropped over 40% on its debut, trading at $0.1827 as of October 2025, with its market capitalization falling from a peak of $10 billion to approximately $4.5 billion Decoding the WLFI Price Crash and What Lies Ahead^[1]. The crash has sparked speculation about the role of the Trump family's co-founders, who hold significant stakes in the project, versus external actors like Garret Jin, a Hong Kong-based crypto entrepreneur previously linked to the defunct BitForex exchange.

The WLFI token's presale raised $550 million, with 75% of proceeds directed to the Trump family through affiliated entities WLFI Freefall — Why Traders Are Panicking After Launch Day^[3]. Critics have highlighted concerns over concentrated ownership, with the Trumps and their associates controlling over 80% of the token supply Here’s Why Trump Coin and WLFI Token Prices Are Crashing^[2]. In response to the post-launch volatility, the WLFI community proposed a governance initiative to allocate 100% of protocol-owned liquidity (POL) fees toward token buybacks and burns, aiming to reduce circulating supply and stabilize the price Bitcoin Short Position Profit: Meet Garret Jin^[5]. However, the effectiveness of this measure remains uncertain, as whale activity and regulatory scrutiny continue to weigh on market sentiment.

A key point of contention is the timing of a $735 million Bitcoin short position executed by an unidentified trader just before Trump's October 2025 tariff announcement, which triggered a broader crypto market sell-off. On-chain analysts have linked this trade to Garret Jin, who denies allegations of insider trading, attributing the short to economic analysis and risk alerts from his firm Hyperliquid Whale: Unraveling the BitForex Connection and Garret Jin^[6]. Jin, a former BitForex CEO, has faced scrutiny over past controversies, including the collapse of BitForex in 2024 and accusations of market manipulation SEC Investigates Trump-Connected Crypto Firm^[8]. While some suspect Jin acted as an agent for the Trump-linked WLFI co-founders, no definitive evidence has emerged to confirm this.

The WLFI crash has also drawn broader attention to the Trump family's expanding crypto empire, including the Trump-branded TRUMP and MELANIA meme coins, as well as the USD1 stablecoin. These ventures have generated an estimated $5 billion in paper wealth for the Trump family, with Barron Trump, the president's youngest son, holding 2.3 billion WLFI tokens . Critics argue that these projects create conflicts of interest, as Trump's administration has actively deregulated the crypto industry, including signing legislation to promote U.S. dominance in digital assets .

Regulatory bodies have begun to take notice. The U.S. Securities and Exchange Commission (SEC) is investigating ALT5 Sigma, a crypto firm linked to WLFI, over allegations of stock manipulation and suspicious trading . Meanwhile, foreign investors, including Dubai-based DWF Labs, have injected $25 million into WLFI, raising concerns about potential political influence and regulatory arbitrage .

As the WLFI token navigates its post-launch turbulence, the interplay between governance, market dynamics, and political connections underscores the complexities of the crypto sector. The outcome of ongoing regulatory scrutiny and the Trump family's strategic moves will likely shape the token's trajectory and broader perceptions of crypto-linked political ventures.