World Liberty Financial Faces Allegations of Illegal Token Sales and Preferential Treatment to Investors

World Liberty Financial is under the allegation of illegal token sales. Not only so. This Trump-backed crypto project is also charged with preferential deals with many investors.

World Liberty Financial is facing accusations of illegal token sales and preferential treatment for certain investors in its crypto project, according to a report. The project is also said to be involved in swapping tokens for other blockchain assets, an action that is reportedly against the rules. However, WLF’s X handle has denied these claims, stating that the project is only making “routine movements as a part of usual treasury management.”

In response to the allegations, WLF has denied any wrongdoing, claiming that people are mistaking their routine asset reallocations for fraudulent token sales. But despite their defense, key statistics seem to indicate otherwise. According to a recent report, WLF swapped around $10 million worth of tokens for other blockchain asset tokens and charged a flat 10% fee for the transaction, an action that is not permitted.

Several Public Interest Litigations (PILs) have also raised concerns about the close relationships between Liberty Financial and specific investors and crypto projects, amidst the ongoing investigation into the token sales. Multiple agencies have reported that investors who made large purchases, especially those bringing over $15 million, received preferential treatment.

Such preferential treatment has been a part of traditional investment and trading practices in the past, where investors who contribute more are given better terms. This practice was also observed during the last tenure of the Trump administration, where such treatment was given to investors in exchange for favorable terms, such as lower fees or better interest rates on loans.

A Reuters investigation uncovered some striking details. Retail crypto investor Mike Dudas stated that he purchased over $145,000 worth of tokens from World Liberty Financial. The company, being partly owned by the US President, quickly came under scrutiny for its actions. These actions became even more questionable when the firm began offering its shareholders tokens that gave them the authority to vote on decisions regarding product features and marketing.

According to investors, they had friendly terms with the project advisors, and Samsung wanted to be involved in decentralized finance, so they offered as much as they could. Decentralized finance is a network that operates solely on crypto without any functioning gatekeeper, such as a bank. Dudas is not the only investor; WLF also attracted other investors from locations such as Gibraltar, Puerto Rico, and more. Investors from these regions also purchased millions of tokens from the company that is partially owned by Trump.

Currently, WLFI is offering a generalized token trade, with around 24 billion WLFI tokens priced at $0.05 each.

The allegations began surfacing around 15 days after World Liberty unveiled the sales of about one-fifth of the $100 billion token supply, a move that earned them $254 million in distribution. Around the same time, President Donald Trump took office.

With the completion of the token sales, World Liberty Financial is now preparing for a Q3 2025 launch of its crypto exchange, aiming to offer a range of crypto-related services.