World Liberty Financial Drops 2.438% Amid Scam Concerns

World Liberty Financial's latest price was $0.2294, down 2.438% in the last 24 hours. The cryptocurrency, linked to former U.S. President Donald Trump, has been the subject of significant attention and controversy since its launch. The hype surrounding World Liberty Financial has attracted scammers who are exploiting the excitement to carry out phishing attacks. These attacks leverage new functionalities introduced with Ethereum’s Pectra upgrade, specifically the EIP-7702 “delegate” function. This function allows external accounts to act like smart contract wallets, which, while enhancing functionality, also provides attackers with an opportunity to hijack the delegate mechanism if they compromise the private key.

The EIP-7702 “delegate” scam works by first exploiting a private key through phishing. Attackers then embed a malicious delegate smart contract in the wallet. Once a victim makes any transaction, the malicious code executes, draining the victim’s tokens. This type of scam is particularly appealing to attackers because it allows for automated execution of transactions, such as receiving World Liberty Financial tokens via airdrop, without the need for manual monitoring and draining of wallets. Additionally, scammers have been known to trick users into buying fake World Liberty Financial tokens, as seen in a case where a user lost $4,876 after accidentally purchasing a fake token on Phantom Swap.

World Liberty Financial was formed in Delaware in 2024 as a non-stock corporation to oversee the WLF Protocol. Donald Trump is named co-founder emeritus, and his sons Donald Jr., Eric, and Barron are listed as co-founders. A Trump-linked holding controls about 60% of the corporate structure and is entitled to roughly 75% of the revenues from World Liberty Financial token sales, ensuring the family’s dominance. The total supply of World Liberty Financial tokens is 100 billion, with 33.893% allocated to token sales, 32.6% for community growth and incentives, 30% to founders, and 3.5% to team members and advisors. DT Marks DEFI LLC, the Trump family’s main vehicle in the project, received 22.5 billion World Liberty Financial tokens, equal to 22.5% of the total supply, and is entitled to 75% of net protocol revenues after a $15 million reserve and agreed expenses.

The Trump family’s ventures in crypto extend beyond governance tokens to include memecoins, NFTs, and a fiat-backed stablecoin. The TRUMP memecoin, launched on Solana, reached a market value above $14.5 billion before retreating. Melania Trump also introduced a memecoin, Official Melania (MELANIA), which saw significant profits for early investors. Trump’s digital trading cards, released in 2022 and 2023, sold out in both drops and raised millions of dollars. In May 2025, a private dinner at Trump National Golf Club in Bedminster was held for holders of large TRUMP positions, including international investors like Justin Sun. The ecosystem expanded further with the launch of USD1, a stablecoin issued by World Liberty Financial, which has grown to a market cap of roughly $2.7 billion and was used in a $2 billion deal with Abu Dhabi’s state fund.

The Trump family’s ventures in digital assets have drawn scrutiny from lawmakers and watchdog groups, who argue that the overlap between private holdings and public office raises structural conflicts. In April 2025, Sen. Elizabeth Warren and Rep. Maxine Waters sent a joint letter to the SEC calling World Liberty Financial “an unprecedented conflict of interest.” They asked the regulator to preserve records and examine whether Trump-linked investors received preferential treatment in the token’s approval process. Around the same time, Sen. Richard Blumenthal’s Permanent Subcommittee on Investigations opened a preliminary review into both World Liberty Financial and the TRUMP memecoin, citing risks tied to access-for-ownership events. Watchdog groups have made similar claims, and the TRUMP-holder dinner at Trump National Golf Club in May 2025 became another flashpoint, with lawmakers from both parties flagging the structure as an ethics risk. Concerns also extend to World Liberty Financial’s stablecoin USD1, with lawmakers and analysts warning that reserve transparency and the token’s integration with sovereign capital introduce new risks. Industry voices, including Anthony Scaramucci, head of SkyBridge Capital, have described the ventures as “Idi Amin level corruption.”

Independent blockchain analysts tracked World Liberty Financial’s first hours of trading and found a market shaped by insider activity rather than open participation. Data compiled by StarPlatinum, a widely followed crypto analyst, showed that wallets tied to early allocations unloaded large volumes almost immediately after listing. The top sellers included addresses linked to insider grants and vesting pools, with one wallet selling 12.1 million World Liberty Financial and another vesting-linked wallet selling a similar amount. Several addresses with no history prior to launch also dumped millions of tokens in the same time window. In total, more than 698 million World Liberty Financial were sent to exchanges on day one, with Binance receiving over 400 million, OKX about 180 million, and Gate.io around 118 million. The structure amplified the effect, with early investors capturing profits while retail traders were still buying. The launch revealed where the tokens went, who sold them, and who retained control, resulting in a mechanism that tied crypto revenues to the Trump presidency.

The Trump family's cryptocurrency venture, World Liberty Financial, marked a significant development with the commencement of its token trading on secondary platforms. This event initiated the wider market availability of the World Liberty Financial token, representing a milestone for the project launched approximately a year prior. The trading debut attracted substantial attention and trading volume within the crypto market.

Reports indicate that entities affiliated with the Trump family control a significant quantity of World Liberty Financial tokens, specifically 22.5 billion tokens. While these particular holdings remain locked and unavailable for immediate trading, the initiation of public trading allows for market valuation of the token. Based on the circulated figures regarding the quantity held by Trump-affiliated entities, the theoretical worth of these holdings became a notable point of discussion.

World Liberty Financial, introduced by Eric Trump the previous summer, positions itself as a project aiming to foster a "new era of finance." Prior to the public listing, the project conducted private sales of its World Liberty Financial token to accredited investors. Its publicly available products currently include the World Liberty Financial token and a stablecoin named USD1, though the full suite of intended financial services under the World Liberty Financial brand remains under development.

The project represents part of the Trump family's expanding engagement with the cryptocurrency sector, which also includes ventures into areas such as Bitcoin mining and Ethereum-based initiatives, alongside the well-known $TRUMP memecoin. World Liberty Financial is portrayed as having substantial potential within the decentralized finance landscape. There is mention of ongoing development efforts to build out the World Liberty ecosystem, including plans potentially inspired by other industry models for corporate token holdings.

The rise of World Liberty Financial and the Trump family's deepening ties to the cryptocurrency industry have prompted ethical scrutiny. Critics, including government ethics watchdogs, express significant concern about unprecedented potential conflicts of interest. They argue that substantial holdings in ventures like World Liberty Financial, coupled with the family's political influence, create opportunities for individuals or entities seeking favor to invest in these projects. The situation has been described as potentially involving "more conflicts than ever, with even less transparency" compared to previous circumstances. Concerns were amplified by reports of the Trump administration revisiting crypto regulatory policies established under prior leadership.

In response to market activity and holder concerns following the trading debut, World Liberty Financial announced a proposed buyback initiative specifically targeting long-term holders of the World Liberty Financial token. This proposal is framed as a measure aimed at supporting token stability and rewarding committed participants within the project's ecosystem.