The Trump family has recently made headlines in the crypto world, with reports stating that they now hold a 60% equity share in an entity that has replaced the original co-founders of World Liberty Financial. This move has positioned the Trump family as the controlling party of the crypto platform, raising questions and concerns about potential conflicts of interest and regulatory scrutiny.
According to Reuters, the Trump family’s entity, DT Marks DEFI LLC, is entitled to $400 million in fees related to the venture, with claims on 75% of net revenues from token sales and 60% from World Liberty operations. This has raised eyebrows in the industry, as it leaves World Liberty Financial with only a small fraction of the $550 million generated once Folkman and Herro receive their share.
The Trump family’s involvement in the crypto platform goes beyond just financial interests. Donald Trump himself has been named the platform’s “chief crypto advocate,” with his sons Donald Jr. and Eric holding roles as “web3 ambassadors” and Barron serving as the “defi visionary.” This close connection to the platform could draw political scrutiny, especially as Congress prepares to discuss crypto legislation.
In a bold move, World Liberty Financial recently announced the launch of a USD-pegged stablecoin called USD1. This move comes just in time for the upcoming crypto policy talks in Congress scheduled for April 9. With the platform’s ties to the Trump family and the potential for conflicts of interest, it remains to be seen how lawmakers will react to this development.
Overall, the Trump family’s significant stake in World Liberty Financial raises questions about the intersection of politics and the crypto world. As the platform navigates potential regulatory challenges and political scrutiny, the industry will be watching closely to see how this story unfolds.
This article was originally published on Cryptonews and has been reimagined for a WordPress platform while retaining the key points and structure of the original content.