- The Trump family now controls World Liberty Financial, replacing co-founders Folkman and Herro, with a 60% stake after raising US$550M via WLFI token sales since November.
- A change in governance was signaled by updated terms on the WLF website, shifting from mere support to full control, aided by connections through Steve Witkoff.
The good ol’ Trump family is tightening its grip on its decentralised finance (DeFi) platform World Liberty Financial (WLF), shortly after a funding round that raised a total of US$550M (AU$880M) through WLFI token sales.
Shortly after, co-founders Zak Folkman and Chase Herro were replaced as the platform’s controlling parties, according to a Monday report from Reuters.
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You’re Fired!
The Trump family did what they do best —firing people. But this time, we have to look at the fine print.
Reuters reveals that in January, changes in the terms and conditions on World Liberty’s website revealed that the Trump family had assumed control of the business, even though they originally clarified that they have nothing to do with it and are merely supporters.
Two of the venture’s co-founders, crypto entrepreneurs Zak Folkman and Chase Herro, were replaced as the controlling parties by an entity in which the Trump family holds a 60% stake.
Initially listed as the “sole directors and members” of World Liberty Financial Inc., Folkman and Herro were connected to the Trump circle through Steve Witkoff, a New York real estate mogul and longtime Trump associate. Witkoff introduced them to the Trump family after learning about their challenges with traditional financing, a connection that led to the current governance restructuring.
The “DeFi” platform is gearing up to launch its “lend and borrow” market soon, with a personal finance application set to follow (no one really knows what it is about). As reported, the team also revealed plans for launching a U.S. dollar stablecoin, USD1, on both the Ethereum and Binance Smart Chain networks, but not everyone thinks this is a good idea.
The Fundraising Details
World Liberty Financial raised over $550M, primarily after President Donald Trump’s November election win, through the sale of non-tradable governance tokens identified by the ticker WLFI.
Initially, the token sales were modest, accumulating only about US$2.5M (AU$4.7M). However, the project gained significant momentum when Hong Kong-based crypto entrepreneur Justin Sun invested US$30M (AU$48M) on November 25, as reported by Crypto News Australia.
Sun’s stake has since grown to US$75M (AU$120M), and he now serves as an advisor to the project. And, as in a matter of pure luck or chance, in February, the US Securities and Exchange Commission (SEC) paused its case against him, citing “public interest”. Talk about timing.
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