A prominent figure in the cryptocurrency world is publicly calling out the Trump family's crypto venture, alleging the platform has far more control over user accounts than it claims.
The investor, who became one of World Liberty Financial's largest backers by spending at least $75 million on the platform's WLFI tokens, says his account has been frozen since September. According to blockchain analysis, his unable-to-access holdings have lost more than $80 million in value.
"This is the opposite of decentralization. This is a trap door marketed as an open door," the investor wrote on social media Sunday, adding that he remains supportive of pro-cryptocurrency policy but cannot abide what he calls "token scandals" at the platform.
The Platform Fires Back
World Liberty Financial responded by accusing the investor of misconduct that justified the account freeze and hinted at legal action. The company, co-founded by three of Donald Trump's sons with the former president listed as co-founder emeritus, stated it possesses "the contracts" and "the evidence" to defend its position.
World Liberty launched in 2024 during Trump's presidential campaign. Upon taking office, Trump stepped away from official positions at the company, with the White House stating he plays no role in managing the family's crypto operations.
Troubling Signs for the Platform
The frozen-account dispute comes as broader financial concerns plague World Liberty. In February, the company borrowed $75 million from another crypto firm and pledged 5% of its entire WLFI token supply as collateral—a move that alarmed investors worried about the company's ability to repay if token values continue declining.
WLFI has hemorrhaged 74% of its value since August and now trades at roughly 8 cents per token. While the platform's USD1 stablecoin ranks among the ten most-used in the crypto space, questions about World Liberty's financial stability are mounting.
The company insisted Thursday it is "nowhere near liquidation" and claimed it had already repaid $25 million of the $75 million loan.
Expert Skepticism
Crypto consultant Austin Campbell suggested investor concerns about World Liberty's loan arrangement are legitimate, adding weight to ongoing questions about the platform's financial health and governance structure.
This article is based on reporting by NBC News.