Wall Street Millennial
June 13, 2026
Trump Family Crypto Ventures: $2.3 Billion Profit While Investors Lose Same Amount
TL;DR
The Trump family has profited $2.3 billion from multiple crypto ventures while investors have suffered equivalent losses, operating a wealth transfer scheme with projects like World Liberty Financial and American Bitcoin.
Key Takeaways
- 1Trump family made $2.3 billion in profits from crypto ventures while investors suffered $2.3 billion in losses—a direct wealth transfer
- 2World Liberty Financial's WLFI token has no economic value; holders cannot participate in profits despite being governance token holders
- 3Alt 5 Sigma (later AI Financial Corp) paid $1.5 billion for WLFI tokens that are now worth ~$440 million, with a 12-month lockup preventing sales
- 4UAE state entities invested $500 million for 49% equity and $2 billion in USD1 stablecoins, followed by Trump administration loosening semiconductor export controls
- 5WLFI tokens were non-tradable at launch despite being sold to investors, creating an illiquid asset with no exit strategy
- 6Justin Sun, under SEC investigation for Tron manipulation, bought $75 million of WLFI; his case was resolved with only $10 million settlement afterward
Notable Quotes
“All the crypto is down right now, so you can't squarely blame it on Trump.”
— Texas business owner who invested in American Bitcoin
“The Trump family has profited to the tune of $2.3 billion from its various crypto ventures. This was offset almost exactly by losses suffered by the investors in the ventures.”
— Narrator
Chapters
1. Trump's Crypto Empire Overview
During his 2024 campaign, Trump promised to be pro-crypto, receiving $100+ million in donations. The Trump family launched multiple crypto ventures and profited $2.3 billion while investors lost the same amount—a pure wealth transfer with no real economic value creation.
2. World Liberty Financial Structure
Launched September 2024, World Liberty Financial is 75% Trump-owned and created the WLFI governance token and USD1 stablecoin. The company raised $550 million by selling WLFI tokens, with $400+ million going directly to the Trump family.
3. WLFI Token's Economic Worthlessness
WLFI tokens are governance tokens but have no mechanism for profit participation, buybacks, or burns. All protocol revenue goes to the for-profit World Liberty company owned by Trump family. Tokens were non-tradable at launch despite being sold to investors.
4. Justin Sun Investment and SEC Settlement
Justin Sun, founder of Tron, purchased $75 million of WLFI while under SEC investigation for alleged cryptocurrency manipulation. Shortly after his purchase, the Trump-controlled SEC resolved the investigation with only a $10 million settlement.
5. UAE Investments and Geopolitical Favors
A UAE government entity invested $500 million for 49% equity in World Liberty Financial. Following this investment, the Trump administration loosened semiconductor export controls on UAE. Additionally, UAE invested $2 billion in stablecoins, generating $60 million annual interest for World Liberty.
6. Alt 5 Sigma's Catastrophic Investment
Alt 5 Sigma announced plans to become a WLFI treasury company, purchasing 7.3 billion WLFI tokens for $1.5 billion through a dilutive financing arrangement that increased its share count over 10-fold. The WLFI tokens are now worth ~$440 million with a 12-month lockup.
7. CZ Pardon and Binance Connection
Binance founder CZ pleaded guilty to money laundering in 2023 and served 4 months. In October 2025, Trump pardoned him, removing his criminal record and allowing him to potentially return to Binance.
8. Investor Losses and Market Collapse
Alt 5 Sigma stock collapsed from $6 to $0.64 after the dilutive capital raise. American Bitcoin, another Trump-backed venture, fell from $4.19 to $0.83. Retail investors face massive unrealized losses while the Trump family withdraws cash profits.
Key People & Entities
- Donald Trump Jr. and Eric Trump
- Trump family's adult sons who run most of the family's crypto ventures
- Justin Sun
- Tron cryptocurrency founder who purchased $75 million of WLFI while under SEC investigation
- CZ (Changpeng Zhao)
- Founder of Binance who pleaded guilty to money laundering and was later pardoned by Trump
- World Liberty Financial
- Crypto company 75% owned by Trump family that created WLFI token and USD1 stablecoin
- Alt 5 Sigma / AI Financial Corp
- Publicly traded micro-cap company that invested $1.5 billion in WLFI tokens and later rebranded to AI Financial Corp
- American Bitcoin
- Publicly traded Bitcoin mining company co-founded by Eric Trump
- Reuters
- News organization that investigated Trump family's crypto ventures and documented $2.3 billion in profits
Glossary
- WLFI Token
- A governance token created by World Liberty Financial that gives holders voting rights but provides no economic participation in protocol profits
- Governance Token
- A cryptocurrency that grants holders voting rights on protocol changes but may have no connection to actual economic value or profits
- Stablecoin
- A cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency like the US dollar (e.g., USD1)
- DeFi (Decentralized Finance)
- Financial services built on blockchain technology without traditional intermediaries; World Liberty created a DeFi lending platform
- Prefunded Warrants
- Financial instruments that are economically identical to shares of common stock and can be exercised to purchase additional shares
- Lock-up Period
- A time restriction during which investors or insiders cannot sell their shares or tokens (Alt 5 Sigma's WLFI holdings had a 12-month restriction)
- Penny Stock
- A low-priced stock, typically from small companies, traded at low values (Alt 5 Sigma was a penny stock before the capital raise)
- Treasury Company
- A company that holds cryptocurrency or other assets as part of its corporate treasury strategy