Duke Lecturer Argues Trump-Backed World Liberty Financial Issued Unregistered Security

WLFI1.29%
DOLO1.76%
SUN-0.65%
According to Lee Reiners, a lecturer at Duke University and former Federal Reserve examiner, on Friday (May 8), World Liberty Financial's WLFI token may be an unregistered security despite the project's claims that it is a pure governance token. Reiners argued that the 25 billion WLFI tokens sold out of a 100 billion total supply were marketed with expectations of profit, meeting the SEC's Howey Test criteria for securities. The token was sold before the protocol was built and leveraged the Trump family name. Reiners also cited a $75 million arrangement with the Dolomite lending protocol and ongoing litigation from Justin Sun alleging token freezes as evidence of centralized control, questioning whether WLFI qualifies as a security.
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