New York AG appeals reversal of Trump’s $500 million fraud penalty - CNBC

New York AG appeals reversal of Trump’s $500 million fraud penalty - CNBC

New York Attorney General Letitia James has appealed a court's decision to dismiss a $500 million penalty imposed on former President Donald Trump and his company for business fraud. The appeal comes after a judge overturned the penalty, stating that the attorney general's office had failed to provide sufficient evidence to support the charges [1].

The appeal is a significant development in the ongoing legal battle between the attorney general's office and the Trump family. The original penalty was part of a broader investigation into alleged fraudulent business practices by Trump and his company. The attorney general's office had accused Trump of inflating the value of his assets to secure loans and other financial benefits [1].

The appeal marks the latest chapter in a contentious legal saga that has seen Trump and his family facing multiple legal challenges. The reversal of the penalty has been seen as a setback for the attorney general's office, which has been seeking to hold Trump accountable for alleged fraudulent activities [1].

In a separate development, the Trump family is set to receive a substantial payout of $500 million through a complex transaction involving the WLFI cryptocurrency. The deal, orchestrated by Alt5 Sigma, a payments firm, raised $750 million in cash to acquire WLFI tokens, a governance token tied to World Liberty Financial (WLF). This transaction places Trump-backed entities on both sides of the deal, sparking concerns about potential conflicts of interest and insider risks [2].

The unusual structure of the deal reflects the growing dominance of crypto in the Trump family's business interests. This shift has overshadowed the family's real estate empire, which Trump built over five decades. Meanwhile, Alt5 Sigma raised $1.5 billion through stock offerings to fund its crypto treasury strategy focused on WLFI tokens. The firm is currently under SEC investigation for potential fraud, including earnings inflation and stock manipulation [2].

The high-stakes maneuver comes as WLFI prepares to begin trading on September 1, coinciding with Labor Day, while US markets are closed. Early market chatter values WLFI at around 30 cents a token, giving it a potential market cap that could rival that of the top 45 digital assets. Trading platforms including Kraken, the OKX exchange, HTX, MEXC, Gate.io, and KuCoin have already lined up to list WLFI [2].

The Trump family's WLFI holdings exceed $6 billion, with President Trump himself holding roughly two-thirds of the tokens. However, questions remain about whether the family can effectively cash out. WLFI insiders are subject to strict trading limits, with only a small portion of tokens eligible for sale at launch. Even modest selling pressure could destabilize the price, a dynamic already seen with Trump-themed tokens that spiked and then crashed earlier this year [2].

The launch of WLFI was officially announced on Binance and the Ethereum mainnet on September 1. Alt5 Sigma holds approximately 7.5% of the total supply of WLFI and is involved in token management. The project has also burned 47 million tokens worth $11.34 million, removing them from the circulating supply [3].

The historic launch of WLFI trading was much anticipated by the crypto community, which is currently trading near $0.2293 with a 24-hour trading volume of $1.61 billion. The project confirmed that no founders, team, or co-founders sold tokens, and early retail investors were prioritized ahead of founders and partners [3].

The future of WLFI remains uncertain, but its debut is significant as it marks one of the most controversial token launches in crypto history, with a US president's family at the center of the transaction.

References:
[1] https://www.cnbc.com/2025/09/04/trump-new-york-appeal-james-fraud.html
[2] https://www.ainvest.com/news/trump-family-set-receive-500m-wlfi-cryptocurrency-deal-2509/
[3] https://www.cryptotimes.io/2025/09/03/world-liberty-burns-47m-wlfi-tokens-after-historic-launch/