Trump-backed World Liberty Financial Appears to Be Offloading Ethereum

World Liberty Financial appears to be offloading Ethereum following increasing losses as ETH plunges below $1,500.

World Liberty Financial, the Trump-backed crypto platform, appears to be offloading Ethereum following an 80% price wipeout and surging interest rates.

According to Lookonchain, a wallet linked to WLFI sold 5,471 ETH for around $8 million, at a price of $1,465, on Monday.

The sale represents a major loss. WLFI had previously spent around $210 million to acquire 67,498 ETH at an average price of $3,259. At current prices, the firm is sitting on an unrealized loss of roughly $125 million.

Has Trump's World Liberty(@worldlibertyfi) started selling $ETH at a loss?According to Arkham, a wallet possibly linked to #WorldLiberty sold 5,471 $ETH($8.01M) at $1,465 30 minutes ago.#WorldLiberty previously spent ~$210M to buy 67,498 $ETH at an average price of $3,259, and now it’s still holding 62,027 $ETH at an average price of $3,188 with an unrealized loss of about $125M. pic.twitter.com/jPMqCiADvt

— Lookonchain (@Lookonchain) April 9, 2024

The development comes as ETH fell below the key psychological level of $1,500 on Monday amid increasing macroeconomic headwinds.

Earlier this month, WLFI confirmed the launch of USD1, a stablecoin backed 1:1 by cash, short-term U.S. Treasuries, and equivalents. The token is live on Ethereum and BNB Chain, with more networks to come.

USD1 is designed for institutions seeking transparency and compliance, with reserves audited by third parties and custody handled by BitGo. It serves as a safe substitute for algorithmic or undercollateralized tokens.

“We are excited to introduce USD1, a stablecoin that provides a stable and reliable digital currency for use in DeFi protocols, payments, and other Web3 applications,” said Ben Hadley, CEO of WLFI.

“USD1 offers a transparent and compliant option for institutions, with full reserves backing and custody by a leading crypto company.”

Founded in 2024, WLFI is a decentralized finance platform that provides financial tools based on blockchain technology. Through its token sale, the project has raised $550 million, including $75 million from Tron founder Justin Sun, who has joined the platform as an advisor.

However, the firm has faced governance concerns and criticism over political influence due to its Trump connections.

The Trump family gained majority control of the platform in January by acquiring a 60% share through a new holding company, WLF Holdco LLC. As a result, they will control 60% of the platform’s operating profits after the platform is fully operational, and they are also entitled to 75% of the token sales revenue under the new structure.