Fears grow that Trump boys are about to cut and run and hang their investors out to dry
A quiet crypto filing is setting off loud alarm bells over whether the Trump family is gearing up to take the money and run.
According to The Washington Sun, "four anonymous digital wallets" simultaneously moved more than 20 billion $WLFI tokens — one of two cryptocurrencies issued by the Trump family's firm, World Liberty Financial — into a new "vesting contract on May 19."
As the report points out: "One of the exchanges was for the precise amount of crypto that Trump was awarded when setting up the firm, World Liberty Financial, which he controls. Three of the others match precisely the amount of crypto given to other relatives of the president. Trump’s sons — Don Jr., Eric, and Barron — are the only other family members who have been identified as founders."
A lawyer for the company, Eric Hageman, insisted nothing suspicious is going on. "The premise of your questions is misguided," he told the Sun. "WLFI token holders approved a governance proposal that obligated the founders to burn 10 percent of their holdings."
But three experts who reviewed the company's governance documents told the outlet the move was optional, not required — and the paperwork backs them up. The rules state founders "will have the option to elect less favorable unlock terms or remain indefinitely locked," with tokens staying frozen unless a founder "affirmatively" opts in.
"They could've stuck with the indefinite lock," said Molly White, who runs a newsletter tracking crypto and tech policy. "The Trump family is laying the groundwork to cash out their WLFI stake."
According to the Sun, "While their value would decline if sold, the tokens owned by the family are currently valued at more than $1 billion. The president has already reported more than $550 million in income from sale of World Liberty Financial tokens, while retail investors have lost $1 billion from their investments in the company, according to an analysis by a blockchain company."
Zach Everson of watchdog group Public Citizen hrashly criticized the move, telling the Sun the firm has never had a clear purpose "other than enrich the Trumps."
“They could’ve stuck with the indefinite lock. They say explicitly in the WLFI proposal that was voted in that it was optional … The Trump family is laying the groundwork to cash out their WLFI stake," accused Molly White, a crypto expert who runs a newsletter covering crypto and tech policy, the Sun reported.