Trump Offspring and Allies Build Billion-Dollar Crypto Empire Amid Political Ties
In the aftermath of Donald Trump's presidency, his sons and associates have leveraged their connections to establish a lucrative cryptocurrency venture, World Liberty Financial, which has generated substantial wealth for their families while raising questions about conflicts of interest and investor outcomes.
The Genesis of World Liberty Financial
During the interregnum period, Eric Trump and Donald Trump Jr. convened with childhood friend Zach Witkoff at Mar-a-Lago to explore new financial opportunities. Joined by crypto enthusiasts Zak Folkman and Chase Herro, the group conceptualized World Liberty Financial, a crypto enterprise that has since outpaced the Trump family's traditional real-estate ventures in profitability.
Since President Trump's re-election, World Liberty has distributed at least $1.4 billion to the Trump and Witkoff families, based on an analysis of public disclosures and private documents. A notable transaction includes a $500 million deal selling nearly half the company to an Abu Dhabi royal and co-investors, marking a significant foreign investment in a U.S. president's business.
Key Figures and Their Roles
Zach Witkoff, 32, now leads World Liberty as CEO, transforming from a real-estate project manager to a global crypto figure. He maintains relationships with influential crypto leaders, such as Binance founder Changpeng Zhao, whom Trump pardoned in October 2023.
Eric Trump serves as the public face of American Bitcoin, a separate crypto company where he holds a $90 million stake. Don Jr. and Barron Trump are co-founders of World Liberty, with Barron reportedly advising on digital wallet mechanics during his studies at New York University.
Brandon Lutnick, son of Commerce Secretary Howard Lutnick, oversees Cantor Fitzgerald, an investment bank that has become a top choice for crypto deals, including advising Trump Media on bitcoin acquisitions.
Financial Gains and Market Dynamics
World Liberty has earned the Trump family over $1.2 billion in cash since its launch, with paper gains from crypto holdings exceeding $2.25 billion. In contrast, Trump's real-estate empire took eight years to generate similar cash flows between 2010 and 2017.
The Witkoff family has profited at least $200 million from the venture. The Abu Dhabi investment, involving Sheikh Tahnoon bin Zayed Al Nahyan, provided a $500 million infusion, with $187 million directed to Trump entities and $31 million to Witkoff affiliates.
Regulatory Scrutiny and Denials of Conflict
Despite assertions of independence, the rapid wealth accumulation has drawn scrutiny. A White House spokeswoman stated, "There are no conflicts of interest," emphasizing that President Trump acts in the public's best interest. White House counsel David Warrington noted the president has no involvement in business deals affecting his constitutional duties.
World Liberty spokesman David Wachsman defended the company, calling it a privately held firm focused on benefiting the U.S. economy and denying any conflicts. He highlighted Zach Witkoff's prior business success, including managing over $1 billion in capital.
Expansion and Challenges
World Liberty shifted from initial decentralized finance products to developing USD1, a dollar-pegged stablecoin. Binance provided engineering support for this project, coinciding with Zhao's pardon. The stablecoin now generates significant revenue, with a recent Binance promotion boosting holdings by $3 billion, potentially yielding $200 million annually.
However, investor outcomes have been mixed. American Bitcoin, led by Eric and Don Jr., saw its stock plummet over 80% after a public listing, though Eric retains substantial paper gains. Alt5 Sigma, a firm acquired by World Liberty, experienced a 75% drop in share price, with token holders complaining about lockup restrictions preventing sales.
Future Prospects and Events
The Trump-Witkoff alliance continues to expand, with plans for crypto products backed by real estate and commodities. The inaugural World Liberty Forum is scheduled for February 18 at Mar-a-Lago, featuring speakers like Goldman Sachs CEO David Solomon and Republican senators.
This saga underscores the intersection of political influence and cryptocurrency, raising debates about transparency and ethical boundaries in the digital finance era.
