Foreign investments surge into the cryptocurrency holdings of the Trump family, boosting their overall wealth.
Fresh Take:
President Donald Trump's wallet is bulging thanks to his crypto ventures, alleges State Democracy Defenders Action in a recent report. This nonprofit organization, known for its anti-autocracy stance, claims that about 40% of Trump's net worth is derived from digital assets, amounting to a staggering $2.9 billion.
This crypto bonanza stems from Trump's personal memecoins, the Official Trump trump3.51% and Melania melania0.44%, and a large stake in World Liberty Financial (WLFI), a crypto exchange closely linked to Trump, launched in 2024. The figures are jaw-dropping indeed, but it's important to note that the group behind the study maintains a critical stance towards the president.
Trump's crypto fortune could grow even larger. World Liberty Financial announced recently that MGX, backed by Abu Dhabi, plans to invest a whopping $2 billion into the Trump-tied exchange by purchasing its new stablecoin, USD1.
At Token2049 on May 1, World Liberty Financial co-founder Zach Witkoff confirmed that USD1 had been selected as the official stablecoin for MGX's investment into Binance.
Closeness to Trump's Crypto Ventures
A quick glance at World Liberty's website sheds light on the Trumps' close ties to the operation. A family-affiliated entity owns a 60% stake and holds 22.5 billion $WLF tokens. However, it's not just a family affair.
David Sacks, Trump's White House Crypto Czar, stands to benefit from the USD1 stablecoin's custodial deal with BitGo, a company in which he still holds a stake. Sacks kept his BitGo ownership thanks to a March 5 conflict-of-interest waiver from the White House Counsel. Steven Witkoff, Trump's Middle East Envoy, is also a co-founder of WLFI, alongside Trump's two sons, though details about their financial involvement remain vague.
Justin Sun, a top crypto entrepreneur, bought $30 million in $WLFI just weeks after Trump's 2024 election win. This purchase enabled a Trump-linked holding company, DT Marks DEFI LLC, to receive 75% of the net protocol revenues. However, the specifics of the MGX deal's benefits for Trump remain uncertain.
As Trump's crypto empire expands, so do concerns about conflicts of interest. Some question whether crypto cronyism is rampant under the Trump administration, considering the loosening of oversight on the digital asset industry. Critics argue that this could potentially undermine national security and encourage corruption among illicit actors exploiting crypto.
The Trump administration's U.S. Securities and Exchange Commission has dropped multiple lawsuits and investigations against crypto and blockchain companies, including Dragonchain, Coinbase, Gemini, Uniswa, and Ripple. Some interpret this as a pro-crypto strategy, less about decentralization and more about consolidation—of wealth, influence, and Mar-a-Lago dinner invites.
A $20 million Logistics Firm Earmarked for Trump's Memecoin
Notes:
- The report from State Democracy Defenders Action estimates Trump's crypto wealth based on his personal memecoins, stake in WLFI, and its USD1 stablecoin.
- Questions have been raised about Trump's potential conflicts of interest in crypto due to his personal financial interests and his administration's policies towards the digital asset industry.
- Critics argue that the reduced regulation could undermine national security and invite corruption, emboldening illicit actors using crypto.
- Close ties between Trump and key players in World Liberty Financial create concerns about conflicts of interest.
- The Trump administration's U.S. Securities and Exchange Commission dropping lawsuits and investigations against crypto companies has been interpreted as favoritism towards the industry.
- The State Democracy Defenders Action report suggests that approximately 40% of President Donald Trump's net worth is derived from digital assets, estimated at $2.9 billion, primarily from his personal memecoins and a large stake in World Liberty Financial (WLFI).
- WLFI, co-founded by Trump's Middle East Envoy, Steven Witkoff, and his two sons, is planning to issue a stablecoin, USD1, which MGX, backed by Abu Dhabi, has agreed to invest $2 billion into WLFI by purchasing the new stablecoin.
- A family-affiliated entity owns a 60% stake and holds 22.5 billion $WLF tokens in WLFI, shedding light on the Trumps' close ties to the operation.
- David Sacks, Trump's White House Crypto Czar, may benefit from the USD1 stablecoin's custodial deal with BitGo, a company in which he still holds a stake, thanks to a March 5 conflict-of-interest waiver from the White House Counsel.
- Justin Sun, a top crypto entrepreneur, bought $30 million in WLFI, enabling a Trump-linked holding company, DT Marks DEFI LLC, to receive 75% of the net protocol revenues.
- The loosening of oversight on the digital asset industry under the Trump administration, with the U.S. Securities and Exchange Commission dropping multiple lawsuits and investigations against crypto companies like Coinbase, Gemini, Uniswa, and Ripple, has led to concerns about potential conflicts of interest, national security, and corruption.
- In the midst of Trump's expanding crypto empire, questions persist on whether crypto cronyism is rampant under the Trump administration, with critics suggesting that this could be less about decentralization and more about consolidation—of wealth, influence, and Mar-a-Lago dinner invites.
