World Liberty Financial, the Trump family’s cryptocurrency venture, conducted undisclosed sales of 5.9 billion WLFI tokens to private investors, generating approximately $295 million without public disclosure. The sales occurred alongside two public fundraising rounds totaling $550 million between October 2024 and January 2025, according to Bloomberg reporting citing Tokenomist.ai analysis. The discovery has intensified scrutiny over governance transparency and investor protections within the project, which routes 75% of all proceeds to DT Marks DEFI LLC, a Trump-affiliated entity.
How Private Sales Remained Hidden
Tokenomist.ai uncovered the undisclosed token allocations by analyzing governance filings that showed unexplained increases in token distribution. The project confirmed the existence of “white glove” transactions but refused to disclose buyer identities or specify fund recipients. World Liberty Financial has not released the exact amount raised from private sales, the names of participating investors, or where those proceeds were directed beyond the 75% allocation to DT Marks DEFI LLC. The 5.9 billion tokens sold privately represent a significant portion of the 22.5 billion tokens currently held by the Trump-affiliated entity.
Token Price Collapse and Investor Disputes
WLFI reached an all-time high of $0.33 on September 1, 2025, before collapsing to an all-time low of $0.054 this week, representing an 83% decline. Justin Sun, Tron founder and major investor who committed $45 million to public fundraising rounds, has filed a legal complaint against World Liberty Financial. Sun claims his address was blacklisted via smart contract function, his voting rights were revoked, and his 4 billion WLFI holdings face potential burning without justification. The project alleges Sun caused a 40% price crash at launch, a claim he disputes. A governance proposal would lock early investors’ tokens for a minimum of two years; Sun warns non-acceptance could result in indefinite lockups.
Collateral Risk and Structural Concerns
World Liberty Financial deposited 5 billion of its own tokens to Dolomite, a decentralized lending protocol, and borrowed $75 million against the collateral. Cornell University economist Eswar Prasad criticized the arrangement: “It is surreal to have the Trump family not only profiting off this financial venture that features glaring conflicts of interest but doing so in a way that blocks other investors from sharing in the gains.” The undisclosed private sales raise questions about whether early public investors received equitable pricing and access compared to unnamed private participants. No official statement from Donald Trump or family members has been released regarding the private fundraising structure or governance disputes.
Next Steps and Unresolved Questions
Justin Sun’s legal complaint remains pending without a publicly confirmed resolution date. World Liberty Financial has not responded to specific allegations regarding token blacklisting, voting rights revocation, or the legitimacy of governance proposals. The identities of private investors remain undisclosed, as do the specific recipients of proceeds from the $295 million private sale. Market reaction continues as WLFI trades near all-time lows, with institutional investors monitoring whether governance disputes will trigger further liquidation.
