WLFI's 13% Jump Sparks Ethics Debates as Trump Pardon Ripples Through Crypto

World Liberty Financial's (WLFI) token surged over 13% to $0.14 in the wake of U.S. President Donald Trump's controversial pardon of Binance founder Changpeng Zhao, sparking renewed speculation about the crypto venture's ties to the Trump family and its broader market implications. The move, which followed weeks of consolidation, marked a sharp reversal for WLFI, which had been trading between $0.12 and $0.13 before the breakout, marked by a WLFI price jump.

The pardon, framed by Trump as a correction of "unfair prosecution" by the previous administration, sent ripples through the crypto sector. WLFI's price jump coincided with a 170% surge in 24-hour trading volume to $437 million, driven by both retail investors and institutional activity. Analysts attributed the rally to the token's deep connection to Trump's crypto ambitions, particularly through World Liberty's USD1 stablecoin, which has been linked to high-profile deals with entities like Abu Dhabi's MGX, according to a Reuters investigation.

World Liberty's USD1 stablecoin, which accounts for 75% of its total supply, was central to a $2 billion investment by MGX, a state-controlled Abu Dhabi firm, in Binance. This transaction, completed in 2025, channeled funds into U.S. Treasury securities, with 38% of the interest income flowing to the Trump Organization. Critics, including Democratic Senators Elizabeth Warren and Jeff Merkley, raised concerns about potential conflicts of interest under the Emoluments Clause, which prohibits U.S. officials from accepting gifts from foreign governments, as detailed in the Reuters investigation.

The WLFI token's recent performance has been further fueled by Trump's broader crypto agenda. Last month, World Liberty announced an airdrop of $1.2 million in WLFI tokens to early adopters of USD1, a move designed to incentivize participation in its stablecoin ecosystem. This follows a pattern of high-profile partnerships, including a 2024 deal with Binance that saw the exchange list WLFI, and a 2023 agreement with the Trump Organization to integrate its tokens into the "TRUMP" brand's digital offerings, which the Reuters investigation also examined.

Political backlash to Trump's pardon of Zhao has intensified. Warren and others have labeled the decision a "corruption play," arguing that it undermines regulatory efforts to hold crypto executives accountable. Meanwhile, WLFI's price trajectory has drawn attention from analysts, who see the token as a barometer of Trump's influence over the crypto market. "If WLFI holds above $0.145, it could target $0.17–$0.20 in the short term," one strategist noted, citing a Coinpedia analysis.

The Trump-linked token's volatility reflects broader uncertainties in the crypto sector. While WLFI's recent gains suggest growing institutional confidence, its long-term viability depends on regulatory clarity and the sustainability of its business model. For now, the token remains a focal point for investors betting on the intersection of politics and digital assets.