Trump-backed Crypto Project Exposed as Possible Scam with $40M Token Price Plunge

According to Nic Carter, a partner at Castle Island Ventures and former supporter of Donald Trump's 2024 presidential campaign, he was approached by Steve Witkoff, co-founder of World Liberty Financial (WLFI), to become an advisor for their cryptocurrency project. However, Carter declined the offer after Witkoff struggled to explain the concept of decentralized finance (DeFi).

Carter recalled that Witkoff described DeFi as a 'me-me-coin', which he found confusing. This led him to suspect that the project might be a scam.

WLFI's token was initially listed at $0.3313 on September 1, 2025, but its price has since plummeted by 40% to around $0.055. The company holds back 68.2% of the tokens from circulation, with only 31.8% available for trading.

WLFI's business model has been criticized for prioritizing Trump's family wealth over that of its ordinary shareholders. Justin Sun, an early supporter of the project, has since distanced himself and filed a lawsuit against WLFI in California alleging fraud. In response, WLFI filed a counter-suit for defamation in Miami.

The World Liberty Financial token is currently facing a looming deadline to be unlocked as per their 2028 plan, but only if Trump's supporters vote in favor of the proposal. This has raised concerns among investors about the project's legitimacy and potential consequences.