Trump-Linked Crypto Firm World Liberty Financial Faces Over $100 Million in Losses
Market Turmoil and Risky Bets Lead to a Sharp Portfolio Decline
World Liberty Financial Inc. (WLFI), a cryptocurrency venture associated with U.S. President Donald Trump, has suffered a staggering $110 million drop in its digital asset portfolio, according to a new report from Arkham Intelligence.
Massive Crypto Decline Hits WLFI’s Holdings
Once valued at $336 million, WLFI’s portfolio now stands at approximately $226 million, reflecting significant unrealized losses. These setbacks stem from broader market volatility and concerns surrounding the firm’s aggressive investment strategy.
Ethereum (ETH) accounted for the most significant portion of the losses, plunging by 65%. WLFI acquired most of its ETH holdings at an average price of $3,240 per token, but the asset has since dropped to around $2,100. Other major holdings, including 40.718 million Tron (TRX) tokens and 10 billion WHITE tokens, have also taken substantial hits, with WHITE experiencing a sharp 20.89% decline.
Despite the downturn, WLFI has yet to liquidate its assets, leaving these losses unrealized for now. However, mounting scrutiny over the company’s high-risk strategy raises serious questions about its long-term sustainability.
Aggressive Crypto Acquisitions Backfire
WLFI’s troubles follow a massive buying spree in January, coinciding with President Trump’s inauguration. The firm purchased over $100 million in digital assets at the time, including 14,403 ETH at an average price of $3,333 per token and 94.94 Wrapped Bitcoin (WBTC) worth $9.84 million.
More recently, in early March, WLFI spent another $21.5 million on additional crypto acquisitions, including 4,468 ETH, 110.6 WBTC, and 3.42 million Movement Network (MOVE) tokens. However, continued market turbulence has eroded the value of these investments, deepening the firm’s financial struggles.
Economic Policies and Market Uncertainty Weigh on Crypto
The decline in WLFI’s portfolio is not happening in isolation. Broader economic uncertainties, including shifting trade policies and regulatory crackdowns, have contributed to market instability.
The Trump administration recently imposed steep tariffs—25% on imports from Canada and Mexico, along with a 20% levy on Chinese goods. These measures have sparked retaliatory actions from trading partners, escalating global trade tensions. Historically, tariffs have fueled inflation, disrupted supply chains, and slowed economic growth—all of which have weighed on risk assets, including cryptocurrencies.
In just the past 24 hours, over $450 million in crypto positions have been liquidated, illustrating the fragility of the market. Bitcoin, which briefly surged past $82,000, has dipped 2.7% in a day and over 11% in the past week. Other major cryptocurrencies, including Solana (SOL), Ripple (XRP), and Cardano (ADA), have also seen steep declines.
What This Means for Trump’s Crypto Strategy
WLFI’s struggles raise concerns about the Trump administration’s broader crypto policies, particularly its push to establish a strategic U.S. crypto reserve. With the government already holding significant digital assets—including Ethereum, Bitcoin, and Solana—critics question whether national crypto reserves could suffer a similar fate in the face of market volatility.
As WLFI continues to navigate these financial setbacks, speculation grows about whether the firm will pivot its investment strategy. A shift toward more stable assets or diversification beyond crypto could be on the horizon. However, without clear adjustments, the company—and possibly the U.S. government’s crypto ambitions—may remain vulnerable to the unpredictable swings of the digital asset market.
