Scrutiny of Trump Family Crypto Ventures
The crypto ventures associated with the Trump family are attracting heightened scrutiny due to the questionable actions of their business partners. A report from Reuters, issued on May 19, sheds light on the troubling history of World Liberty Financial Inc. (WLFI) and its key partners, Zak Folkman and Chase Herro, who were previously involved in the disastrous Dough Finance platform.
Background on Dough Finance
Dough Finance, a crypto trading platform known for its high-leverage opportunities, suffered a significant breach in July 2024, leading to user losses totaling approximately $2.5 million. This loss was attributed to a critical flaw in the platform’s software, which Folkman and Herro acknowledged. Although they promised to reimburse affected users, their commitment quickly fell by the wayside. Just two months after the hacking incident, the pair teamed up with Donald Trump’s sons—Don Jr., Eric, and Barron—to launch WLFI.
Legal Troubles and Investor Impact
Currently, Folkman and Herro are under legal fire concerning their involvement with Dough Finance, facing a lawsuit related to the hacking incident. Among those impacted was investor Jonathan Lopez, who reportedly lost an astounding $1 million in the hack. Despite the ongoing controversy, Eric Trump, who serves as executive vice president of WLFI, has publicly backed Folkman and Herro, stating in an email:
“We are proud of the entire team. They have overachieved our wildest goals and our current trajectory is nothing short of incredible.”
Involvement of Justin Sun
WLFI’s association with controversial figures does not end with Folkman and Herro. It was further complicated by the involvement of Justin Sun, the founder of Tron, who joined WLFI as an advisor in December 2024 after investing $30 million in the firm. Sun is no stranger to controversy, having been subject to multiple investigations by the Securities and Exchange Commission (SEC).
Interestingly, since Sun began advising WLFI, the SEC has halted its investigations into his previous crypto activities, such as the sale of BitTorrent and Rainberry tokens. This recent development has incited concern among Democratic lawmakers, who are now demanding a thorough examination of Trump’s crypto ventures. The unfolding situation encapsulates the tangled web of crypto investments and the potential ramifications of their business operations.
