Reuters: The Trump family controls at least 60% of World Liberty Financial through new holding company

PANews April 1 news, according to Reuters, when World Liberty Financial raised more than $500 million, industry experts pointed out that with governance clauses that favor insiders, the family of former US President Donald Trump took control of the crypto company and seized most of the funds. The project is billed as a "DeFi platform" and claims to allow users to bypass banks to directly use cryptocurrency to obtain financial services. However, the investigation found that the platform has not been operated publicly and the team size is extremely limited.

Still, World Liberty announced in mid-March that it raised $550 million by selling governance tokens. Reuters estimates show that most of the sales occurred after Trump won the election in November last year, and the WLFI token only gives holders the voting rights to modify the project code and cannot be traded publicly. In January this year, World Liberty website details changed to show that the two co-founders Zak Folkman and Chase Herro have handed over control to entities that hold 60% of the Trump family. So far, the Trump family can obtain 75% of the net revenue from token sales and 60% of the platform's operating revenue. Based on this calculation, about $400 million in financing has been granted to the Trump family, and only 5% of the funds left for platform construction (about $27.5 million).