Trump-Linked Project Borrows Billions Against Its Own Tokens

World Liberty Financial (WLFI), a decentralized finance project co-founded by members of the Trump family, is facing controversy for its use of its own governance token and stablecoin as collateral on the DeFi lending platform Dolomite.

The project raised approximately $550 million from 85,000 participants through two token sales, with the Trump family reportedly profiting $1 billion from proceeds while holding $3 billion worth of unsold tokens.

According to blockchain data, WLFI deposited over 5 billion of its governance token into Dolomite and borrowed roughly $75 million in stablecoins, with more than $40 million moving to Coinbase Prime shortly after borrowing.

The choice of platform is not incidental, as Dolomite was co-founded by Corey Caplan, who also serves as an adviser and Chief Technology Officer at WLFI, creating a conflict of interest.