A Bloomberg investigation published May 12 reveals the Trump family extracted approximately $1.55 billion from World Liberty Financial token sales, with a net gain of $660 million after accounting for related transactions. The findings expose a stark disparity: early retail investors remain locked out of 80% of their holdings while insiders, including the Trump-affiliated entity DT Marks DEFI LLC, captured the majority of proceeds during undisclosed private sales to accredited investors.
The Undisclosed Private Sales Structure
World Liberty Financial completed public fundraising rounds before conducting what the company described as “white glove” private token sales to accredited investors. Bloomberg’s investigation identified 5.9 billion WLFI tokens sold through these undisclosed transactions—a figure the company declined to detail publicly. DT Marks DEFI LLC, the Trump-affiliated entity, is contractually entitled to 75% of all token sale proceeds. The company confirmed the private sales occurred but refused to identify buyers or disclose where the capital flowed. The structure allowed insiders to accumulate 22.5 billion tokens directly while retail participants faced strict lock-up constraints.
Token Performance and Holder Restrictions
WLFI peaked at $0.46 before collapsing 85% to trade near $0.06 during the week Bloomberg published its findings. The price decline coincided with revelations about the unequal token distribution. A critical structural element emerged: World Liberty deposited 5 billion WLFI tokens into Dolomite, a decentralized lending protocol where a World Liberty co-founder holds a role. Against this collateral, the protocol lent $75 million in stablecoins—a mechanism that potentially allows insiders to access capital without waiting for retail unlock periods. This arrangement raises questions about how token holders gain liquidity access versus insiders.
Conflicts of Interest and Legal Challenges
Tron founder Justin Sun, a major World Liberty investor, filed a lawsuit in April alleging extortion and illegal scheme violations. The co-founders denied the allegations. Cornell University professor Eswar Prasad stated: “the Trump family is profiting from a financial venture with glaring conflicts of interest in a way that blocks other investors from sharing in the gains.” World Liberty’s co-founder page was removed from the company website shortly after Bloomberg’s inquiry; the company attributed the change to routine updates. Neither regulatory bodies nor law enforcement action has been reported publicly.
What Happens Next
The investigation does not specify when retail investor lock-ups expire or provide timelines for token unlocks. World Liberty has not disclosed the accredited investor list or confirmed whether additional private sales are planned. Justin Sun’s lawsuit status remains unresolved. Retail holders—many of whom purchased at peak prices—face an open question: whether unlock periods will allow exit liquidity before further price deterioration, or whether the insider-friendly capital structure already priced in their losses.
