Uncovering WLFI: The Latest Corruption Model

In the past year, the most magical encryption story undoubtedly belongs to World Liberty Financial (WLFI). It is not just a simple Token, but a “capital drama” jointly staged by political stars, Wall Street capital, and dark horses in the crypto circle.

Today, let’s take a complete look at this project.

Trump Family: Stand or Lead?

WLFI has been closely tied to the Trump family since its inception:

• Trump himself, bearing the title of “Co-Founder Emeritus”;
• Sons, Eric, Donald Jr., Barron, all packaged as “co-founders,” frequently appearing to support WLFI;
• The distribution of benefits is even more blatant: the family actually controls about 60% of the shares of the WLF platform and can take away 75% of the Token sales revenue.

In addition to the Trump family, there is another family that is also fully involved, which is the Witkoff family, long-time friends of the Trumps for over forty years.

Currently, Steven Witkoff serves as the U.S. Special Envoy for the Middle East, involved in diplomatic affairs such as the Middle East ceasefire and the Russia-Ukraine negotiations starting in 2025.

However, from the outside, WLFI is no longer just a financial experiment, but is directly “tokenizing” the political brand.

Some media even say this is an “upgraded version of modern corruption.”

Early investors: Sun Yuchen and Web3Port

Looking at the early investment list of WLFI, two names stand out prominently:

• Justin Sun: In November 2024, at least 30 million dollars were invested in WLFI. Since then, the interaction between the TRON ecosystem and WLFI has become increasingly close.
• Web3Port: This disreputable “incubator” also invested 10 million dollars in early 2025.

Many people say that Web3Port has always been the “spokesperson” for speculative projects, and its emergence has escalated the controversy surrounding WLFI.

Under the impetus of this type of capital, the valuation of WLFI was once rapidly inflated.

Public investors: Withdrawal difficulties cause collective anxiety

$WLFI plans to issue coins in September, but many investors who participated in the public offering are finding it difficult to withdraw coins now.

• The so-called Lockbox smart contract activation failed;
• The wallet shows there is WLFI, but it cannot be unlocked for withdrawal;
• A large number of users are trapped in funds, and there are complaints all over the community.

In theory, users participating in the public offering will unlock 20% of the chips at the TGE, which accounts for about 5% of the total amount of Tokens, and this portion has a market value exceeding 1 billion dollars. If the buying in the secondary market is weak, the selling pressure from these retail investors will also be quite significant.

ALT5: $1.5 billion treasury linked to coin stocks

What truly brought WLFI to the forefront of finance was its collaboration with the Nasdaq-listed company ALT5 Sigma:

• ALT5 issued 200 million shares of stock, raising 1.5 billion dollars in one go;
• Half of the funds will be used to buy WLFI Tokens (approximately 7.5% of the total), while the other half will be injected into the so-called “encryption treasury” for debt repayment and operation;
• The power bundling is also straightforward: Eric Trump becomes a director of ALT5, and WLFI co-founder Zach Witkoff serves as chairman.

This operation is equivalent to giving WLFI a “talisman” from Wall Street, which also allows it to transform on paper into a project backed by institutions.

September TGE: Business Overview

WLFI will officially TGE in September 2025 and enter trading circulation. Currently, its business is roughly divided into two lines:.

Stablecoin USD1

Benchmarking USDT/USDC, claimed to be the core of payment and collateral within the ecosystem;

The current issuance of USD1 is 2.3 billion, of which 2 billion is the investment from the Middle Eastern royal family in Binance, and there are also over 200 million in $WLFI’s own wallet.

Encryption Vault Investment

After public offerings and coin-stock linkage, a total of 2 billion dollars in tokens have been sold. According to the profit distribution rules, the Trump family will take 1.5 billion dollars, and the remaining money will be used for treasury investments.

As of now, the vault holds 460 million dollars, and after deducting tens of millions in project operating costs, it is roughly the remaining amount of the raised funds.

In other words, the WLFI Token sale is more like “family financing” driven by political branding:

• Most of the investors’ money first flows into family accounts;
• The remaining funds obtained at the platform or treasury level are used for operations and purchasing assets such as ETH/WBTC/TRX.

This is also why some criticize it as a “modern corruption case that breaks the boundaries between politics and business.”

——Investors appear to be buying encryption Tokens, but in essence, most of the funds have become the private property of political families.