Trump-Backed Crypto WLFI Tanks 7% in a Day Amid Market Turmoil and Shady Ties

World Liberty Financial (WLFI), the Trump family-backed crypto token, plunged nearly 7% in a single day despite a temporary ceasefire between the US and Iran that briefly lifted market hopes. According to CoinGecko data, WLFI’s price has been steadily falling over the past month, shedding almost 10% in value. This crash is not just about geopolitical uncertainty — it’s about a web of questionable financial dealings and toxic partnerships dragging WLFI down.

WLFI recently integrated its USD1 stablecoin with AB DAO, a decentralized autonomous organization now mired in controversy. AB DAO had promoted the Cambodian Prince Group, whose founder Chen Zhi was sanctioned by US and UK authorities last November for orchestrating a massive online fraud scheme. Authorities seized approximately $15 billion worth of Bitcoin tied to this fraud. WLFI’s association with AB DAO has understandably spooked investors, raising serious doubts about the legitimacy and risk exposure of the Trump family’s crypto venture.

Adding fuel to the fire, WLFI’s treasury reportedly deposited 3 billion tokens into Dolomite and borrowed over $50 million USD1. This opaque and aggressive treasury activity has raised eyebrows among crypto watchers and financial analysts, highlighting the reckless financial engineering behind WLFI’s facade.

The broader crypto market’s struggles are compounding WLFI’s woes. Bitcoin has repeatedly failed to break through the $72,000 resistance level, dragging down altcoins like WLFI. Although the US-Iran ceasefire announcement briefly boosted market sentiment, the rally was short-lived as overall risk appetite remains low.

Analysts at CoinCodex forecast a grim future for WLFI, predicting its price could fall further to $0.06408 by April 2026. Given the toxic mix of internal mismanagement, shady partnerships, and a bearish crypto market, WLFI’s prospects look bleak.

WLFI’s collapse is yet another example of how the Trump family’s crypto ventures are riddled with pay-to-play schemes, questionable deals, and financial risks that ultimately harm investors. As the Trump administration’s legacy of corruption and grift continues to unravel, WLFI’s freefall serves as a stark warning: these aren’t just bad investments — they’re part of a broader pattern of exploiting power for personal gain.