World Liberty Financial Tanks Amid Secret Sale of 5.9 Billion Tokens to Private Investors

World Liberty Financial (WLFI), a decentralized finance venture co-founded by the Trump family and the influential Witkoff clan, has plunged to a record low following explosive news of secret token sales worth hundreds of millions of dollars. Newly uncovered governance filings reviewed by Tokenomist.ai for Bloomberg revealed that WLFI sold an additional 5.9 billion tokens to private accredited investors after raising over $550 million in two public rounds — information that was not clearly disclosed to existing token holders.

This shadowy sale further concentrates control and wealth in the hands of insiders. According to project disclosures, 75 percent of net proceeds from WLFI token sales flow directly to DT Marks DEFI LLC, an entity affiliated with President Trump and his family members. That same entity outright holds 22.5 billion WLFI tokens. Meanwhile, early investors face severe liquidity restrictions, with most of their holdings locked up indefinitely under a controversial governance-approved lockup schedule.

The governance proposal, passed in April 2026, imposes a minimum two-year lockup on early buyers, followed by phased unlocking over several years. Investors rejecting these terms risk indefinite freezes on their tokens. Founders who agree to the vesting plan must burn 10 percent of their allocations, a so-called “alignment mechanism” that critics say is little more than a smokescreen for insider enrichment.

Adding fuel to the fire, Justin Sun, founder of TRON and an early WLFI backer, has accused the project of hiding a blacklist feature in its smart contract. This hidden backdoor allegedly allows WLFI insiders to freeze or seize token holders’ assets at will. Sun escalated the dispute by filing a lawsuit against World Liberty last week, intensifying scrutiny on the project’s governance and transparency.

On-chain data reveals that just four wallet addresses controlled about 40 percent of the voting power on the contentious governance proposal that authorized unlocking 62 billion tokens, with more than 40 billion earmarked for insiders. This glaring concentration of power highlights the pay-to-play nature of the venture and the lack of democratic accountability.

WLFI’s token price plunged below $0.056 following Bloomberg’s report, hitting a fresh all-time low on CoinGecko. Meanwhile, the White House insists that Donald Trump himself has no role in managing the venture, with spokesperson Anna Kelly stating, “President Trump’s assets are in a trust managed by his children. There are no conflicts of interest.” Yet the opaque flow of hundreds of millions to Trump-affiliated entities tells a different story.

Steve Witkoff, Trump’s special envoy to the Middle East and father of WLFI’s CEO Zach Witkoff, reportedly divested from the project amid mounting controversy. Meanwhile, another Trump-backed crypto project, the Solana-based Official Trump (TRUMP) meme coin, is also under fire for allegedly monetizing presidential access. TRUMP’s token price recently hit a new low, down roughly 97 percent from its peak.

World Liberty Financial’s secret token sales and backdoor controls expose the Trump family’s continued pattern of using political power for private enrichment. Investors are left locked out, while insiders reap massive gains shielded by opaque governance and undisclosed deals. This saga is a stark reminder that the Trump era’s corruption extends far beyond traditional politics — it now infects emerging financial technologies too.