Trump's World Liberty Financial: Redefining Power and Profit Rules

World Liberty Financial, the cryptocurrency firm associated with President Donald Trump, had begun establishing itself prior to his return to the White House, as reported by The New York Times.

Zachary Folkman, formerly at the helm of an enterprise known as Date Hotter Girls, reached out to a cryptocurrency company based in the Cayman Islands via Signal. In his message, he proposed a mutually beneficial arrangement involving coin exchanges aimed at enhancing both parties' credibility. However, this proposition came with a significant twist: the crypto firm would need to covertly transfer substantial funds amounting to millions to World Liberty solely for the purpose of claiming association with Trump.

Folkman boasted that people were already shelling out anywhere from $10 million to $30 million for this benefit. However, the Cayman-based start-up turned down the offer. Other companies receiving similar proposals also declined. They deemed it unethical, essentially purchasing endorsements and misrepresenting their actions.

Despite the rejections, the Times claims that World Liberty continued to push, sell coins globally, and accumulated over $550 million.

Trump transforms Global Liberty into an international powerhouse

Trump's return to power unlocked new opportunities for him. By means of World Liberty, he dismantled previous boundaries separating personal enterprises from governmental affairs. The organization is predominantly controlled by a firm associated with the Trump family. Furthermore, it has benefited significantly from specific actions taken during his presidency.

Following Trump's announcement of a national cryptocurrency reserve that encompassed a digital token supported by his organization, the worth of their assets surged significantly. He appointed individuals who were proponents of cryptocurrencies to key positions, designated a previous crypto advisor as the head of the Securities and Exchange Commission, and disbanded the Justice Department’s unit dedicated to investigatingcrypto-related criminal activities.

Global Freedom has been marketing its currency internationally to purchasers based in Israel and Hong Kong. This initiative provided foreign investors with a novel means to gain favor with the Trump administration. Among these investors were individuals overseeing companies that were being probed by U.S. authorities.

A single fraud case was put on hold when an executive invested millions into World Liberty. Meanwhile, other investors aimed to expand their enterprises that required federal authorization.

The firm approached a minimum of five startup companies, proposing an exchange of tokens while secretly insisting on substantial payments. Andre Cronje from SonicLabs commented, "This is a dark mark on our sector." Despite this criticism, Folkman and Chase Herro continued facilitating these agreements, consistently leveraging Trump’s reputation to advance their agenda.

David Wachsman, the spokesperson for World Liberty, dismissed any allegations of misconduct, asserting that the transactions were "carefully considered, strategic partnerships" and labeling claims of political favoritism as "baseless, ridiculous, and perilous." Despite his denials, a significant portion of the earnings remained within their circle. Donald Trump's enterprise holds a 60% stake in World Liberty and secures approximately 75% of certain income generated from coin sales. said the Times.

Eric Trump, overseeing the family enterprise, stated at the Trump Doral golf course in Florida, "This ranks among our most successful ventures." Both he and Donald Trump Jr., who maintain an active involvement in World Liberty, collaborate closely with partners Folkman, Herro, and Zach Witkoff.

Zach, whose father is Trump’s envoy Steve Witkoff, assisted in setting up meetings in Pakistan with Prime Minister Muhammad Shehbaz Sharif. The arrangements included limousines, police escorts, and even performers. According to Wachsman, no US government officials took part in these events.

Trump's cryptocurrency investments soar following election night

Trump’s second electoral victory reversed all previous trends. Immediately after the polls closed, World Liberty’s profile on X tweeted, "Major developments ahead." By nightfall, investments surged into their digital currency. Blockchain data indicated that many purchasers originated from Singapore, South Korea, Hong Kong, and the UAE.

Following Trump's return, several of these investors have started pursuing US market growth. Justin Sun, who founded Tron, purchased $75 million worth of World Liberty coins On Sunday, as Sun faced accusations of fraud from the Securities and Exchange Commission (SEC), he asserted that his investment stemmed from belief in the project. However, soon after, the SEC requested a judge to freeze the proceedings against Sun, mentioning potential negotiations toward a settlement.

The Times reported that the actual offer involved a buyout: paying World Liberty between $10 million and $30 million for its tokens and receiving a lesser amount as an investment in return. Several emerging companies managed to secure agreements with World Liberty despite lacking public announcements. Among them, the Sui Foundation saw their value increase by more than 10% following the announcement of their agreement.

Eric Trump subsequently offered investment guidance on X, advising his followers that it was an opportune moment to purchase $ETH, though he later removed this post. About a month afterward, President Trump unveiled the "US Crypto Reserve," with Bitcoin and Ether playing pivotal roles. This announcement caused Ether's value to surge by 13%, which temporarily increased World Liberty’s holdings of Ether—valued at $240 million—by approximately $33 million before values began to decline again.

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