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Home»Bitcoin»The Trump crypto investigation is over – what the numbers reveal is hard to ignore
Bitcoin

The Trump crypto investigation is over – what the numbers reveal is hard to ignore

May 12, 2026No Comments
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Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Advertising disclosure

A Bloomberg investigation published on May 12 found that members of the Trump family earned approximately $1.55 billion from sales of the World Liberty Financial (WLFI) crypto, increasing their total fortune by approximately $660 million after accounting for previously undisclosed transactions – while early retail investors remain locked out of 80% of their holdings as the token trades near its all-time low.

The investigation, based on an analysis conducted by intelligence platform Tokenomist.ai at the request of Bloomberg, found that World Liberty Financial sold an additional 5.9 billion tokens to accredited private investors after the close of its two public fundraising rounds – transactions worth hundreds of millions of dollars that had not been publicly disclosed or explained to the project’s broader investor base. These sales are in addition to the more than $550 million already raised in public calls for tenders, according to information from Bloomberg.

Who received the crypto proceeds

According to governance information from World Liberty Financial, DT Marks DEFI LLC – a Trump-affiliated entity – is entitled to receive 75% of all proceeds from the WLFI token sale after agreed reserves and expenses, according to the Bloomberg report.

Trump-affiliated parties also directly hold 22.5 billion WLFI tokens. World Liberty confirmed the private sales to Bloomberg, describing them as “white glove” transactions with private buyers, but declined to identify the buyers or disclose where the profits were directed.

The project was co-founded by members of the Trump and Witkoff families, with Zach Witkoff serving as CEO. Donald Trump and Steve Witkoff – who is the president’s special envoy to the Middle East – were listed as co-founders emeritus on the project’s website, although the page listing the co-founders was later removed. A spokesperson said the company regularly updates its site, according to the Bloomberg account.

Investors retained the loss

The contrast between insider results and the experience of retail investors is stark. The first buyers who participated in public fundraising remain excluded from 80% of their symbolic holdings, without any mechanism to exit in a market which has moved strongly against them. WLFI has been trading below six cents this week, representing a decline of about 85% from its all-time high of $0.46, according to BanklessTimes.

Eswar Prasad, a professor at Cornell University, told Bloomberg directly: The Trump family is profiting from a financial business with blatant conflicts of interest in a way that prevents other investors from sharing in the gains.

The project’s most prominent external funder has also become contradictory. Justin Sun, founder of the Tron blockchain and a major investor in WLFI, filed a lawsuit against the company in April in San Francisco federal court, alleging extortion and an illegal scheme to seize its tokens – which the project’s co-founders deny, according to Bloomberg reporting.

World Liberty also deposited 5 billion of its own WLFI tokens into Dolomite, a decentralized lending protocol whose co-founder holds a role at World Liberty, and borrowed approximately $75 million in stablecoins against them. Critics cited by Bloomberg have argued that the structure could allow insiders to convert their holdings into cash without waiting for release periods that could stretch for years.

WLFI Crypto Trump WLFIUSDT.P_2026-05-12_13-24-55

WLFI's price trends to the downside on the daily chart. Source: WLFIUSD chart on Tradingview 

The investigation marks a critical and uncomfortable moment for the nascent sector’s relationship with political legitimacy. A crypto project backed by a sitting president, generating billions for entities affiliated with the founder while retail investors absorb almost all of the losses, is precisely the kind of outcome that regulatory critics have long warned the industry invites without meaningful disclosure standards or investor protections.

Cover image of Grok, BTCUSD chart from Tradingview

Editorial process as Bitcoinist focuses on providing thoroughly researched, accurate and unbiased content. We follow strict sourcing standards and every page undergoes careful review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance and value of our content to our readers.



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