Everything Trump touches becomes a black spot.Mr. Trump’s return to the White House has opened lucrative new pathways for him to cash in on his power, whether through his social media company or new overseas real estate deals. But none of the Trump family’s other business endeavors pose conflicts of interest that compare to those that have emerged since the birth of World Liberty.
The firm, largely owned by a Trump family corporate entity, has erased centuries-old presidential norms, eviscerating the boundary between private enterprise and government policy in a manner without precedent in modern American history.
Mr. Trump is now not only a major crypto dealer; he is also the industry’s top policy maker. So far in his second term, Mr. Trump has leveraged his presidential powers in ways that have benefited the industry — and in some cases his own company — even though he had spent years deriding crypto as a haven for drug dealers and scammers.
He has filled his administration with sympathizers to the crypto cause, including by appointing a former adviser to industry players as chairman of the Securities and Exchange Commission. In addition, the Justice Department recently disbanded a crypto crimes task force, continuing a broader unwinding of Biden-era scrutiny of the industry.
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World Liberty has sold its cryptocurrency to investors abroad, including in Israel and Hong Kong, according to interviews and data obtained by The Times, establishing a new avenue for foreign businesses to try to curry favor with Mr. Trump.
Several investors in World Liberty’s coin managed firms that the federal government accused of wrongdoing. They include an executive whose fraud case was suspended after he invested millions of dollars in World Liberty.
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World Liberty proposed swapping cryptocurrencies with at least five start-ups, and often used the Trump name to solicit steep payments as part of the deals. Even in an industry with a disreputable history, the deals raised alarm among veteran executives.
“It’s a black spot on our industry,” said Andre Cronje, a founder of SonicLabs, a crypto firm that turned down World Liberty’s pitch.
NYT
One could say the ONLY successful thing they've done.“It’s one of the more successful things we’ve ever done,” Eric Trump, the president’s son who runs the family business, said in an interview this month at the Trump Doral golf course in Florida.
Thank you, SCOTUS.He and his older brother, Donald Trump Jr., are actively involved in World Liberty, though they rely on three partners to oversee the daily operations. Two of them, Mr. Folkman and Chase Herro, have a mixed track record in crypto. The other is Zach Witkoff, the son of Mr. Trump’s envoy to the Middle East, Steve Witkoff, who is also a World Liberty founder.
In recent days, Zach Witkoff, Mr. Folkman and Mr. Herro were in Pakistan meeting with the country’s prime minister, Muhammad Shehbaz Sharif, and other top government officials to discuss World Liberty. The trip, complete with limousines, a dance performance and police escorts, seamlessly blended the president’s business interests with the trappings of a state visit. (Mr. Wachsman said no U.S. government officials were involved in the meetings.)
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On the livestream introducing World Liberty, Donald Trump Jr. hailed the men as first-class financial minds.
“You could put them in a boardroom at Goldman Sachs, and they’re going to smoke the people in the room,” he said.
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In 2022, Mr. Herro urged a roomful of crypto enthusiasts to invest in the currency TerraUSD, calling it “one of the coolest assets in history.” The coin imploded a month later, erasing billions of dollars in wealth. Mr. Herro’s most recent venture with Mr. Folkman was a crypto platform called Dough Finance, which was hacked in July, leading to the theft of $2 million.
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In October, Mr. Herro and Mr. Folkman got to work on the company’s first initiative — selling a new cryptocurrency, which it called $WLFI, with the goal of $300 million in sales.
These coins would be different from $TRUMP — the so-called memecoin that spiked in January after Mr. Trump marketed it to his followers before it abruptly crashed.
A memecoin is a type of cryptocurrency based on an online joke or celebrity mascot. It has no practical function other than speculation. After $TRUMP’s initial surge, its price plummeted, costing investors a cumulative $2 billion.
World Liberty, at least according to its marketing pitch, eventually plans to operate as a new type of internet bank that would allow customers to borrow and lend money in various digital currencies.
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[Eric and Don Jr] had become enthusiastic crypto proponents after the Jan. 6, 2021, attack on the Capitol effectively exiled the family business from the mainstream financial system.
“We built and sold and held real estate forever. And for a long period of time, I had access to everyone in the world,” Donald Trump Jr. explained in a live video appearance at a crypto conference in Washington last month. “All of a sudden that became really difficult. And I sort of realized very quickly just how much discrimination there is in the ordinary financial markets.”
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The change of heart also coincided with an influx of millions of dollars in campaign contributions from the crypto industry into the Trump re-election effort. Under the Biden administration, the industry had faced nearly 100 enforcement actions by the S.E.C., and crypto executives wanted a leader to champion their interests in Washington.
During his campaign stumps, Mr. Trump’s qualms about crypto appeared to vanish. At a Bitcoin conference in July, he vowed to turn the United States into the “crypto capital of the planet.”
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Federal law prevents foreigners from donating to presidential campaigns or inaugural funds, but World Liberty’s coin sale offered a new, legal way to back Mr. Trump.
“The main reason for purchasing such a token was to support Trump’s inauguration, as he was the first crypto-friendly president of the United States.”
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President Trump has noted that conflict of interest laws do not apply to him, and that he has broad immunity for official actions he takes as president.
There's a whole lot more in this article about the sleaze the Trumps are dealing in around cryptocurrency. Here's a bit concerning the future of their enterprise...
Jordi Alexander, a crypto executive who helped World Liberty with its plans to launch its stablecoin, said in an interview that the company had already secured commitments of at least $1 billion from investors to buy the stablecoin once it hits the market.
The new venture will only compound World Liberty’s ethical conflicts. The company plans to offer USD1 on a platform developed by Binance, a giant exchange that settled criminal charges with the Justice Department in 2023. This week, Mr. Witkoff, Mr. Herro and Mr. Folkman met with Changpeng Zhao, Binance’s founder and former chief executive, in Abu Dhabi.
Mr. Zhao, who served four months in federal prison for money-laundering violations, has been seeking a pardon from the Trump administration.
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The overlap between Mr. Trump’s policy pronouncements and his business interests have alarmed congressional Democrats, who moved recently to amend the pending stablecoin legislation to bar the Trump family from issuing one.
The amendment failed, and none of the concerns about World Liberty have disrupted its momentum.
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