Trump Family’s Cryptocurrency Project Attracts $25M from Controversial Investment Firm

As
Donald Trump
grab attention by vowing to deport more lawful U.S. residents (and even citizens) to
gulag in El Salvador
His cryptocurrency wealth keeps expanding, and his relatives are engaging in ventures with rather questionable partners who might benefit greatly from befriending the individual loosening the regulations within the sector.

In addition to
Trump
and
First Lady
Melania introduces his-and-her meme coins as part of the Trump family’s initiative leading the decentralized finance platform called World Liberty Financial. This entity has successfully offloaded at least $550 million through their initial digital currency known as $WLFI. In this enterprise, President Trump’s sons—Barron, Eric, and Donald Trump Jr.—hold ambiguous formal roles. However, these arrangements have sparked worries about potential corruption since they provide a straightforward method for channeling funds to the Trumps. It should be noted that DT Marks DEFI LLC, a firm associated with the family, retains certain rights in relation to this project.
75 percent of revenues
From token sales. This allows individuals engaging in malicious activities within the cryptocurrency sector to effectively bribe these entities, anticipating special treatment as a result—meanwhile, the Trump administration persists in its course of action.
deregulate the crypto sector
.

A notable cryptocurrency investor, the China-native entrepreneur and billionaire Justin Sun, has invested a minimum of $75 million in $WLFI and acts as an adviser for World Liberty Financial.
this generous investment
, about a month into Trump’s second term, the Securities and Exchange Commission
froze its civil fraud case
against Sun and his companies. Market observers were left to wonder if he had bought up a functionally worthless asset to secure a reprieve from his legal troubles.

More recently, on April 4, according to an exclusive analysis provided by the corporate watchdog organization
Accountable.US
, which was shared with him
Rolling Stone
, World Liberty Financial sold
another $25 million worth of tokens
to Dubai-based DWF Labs. Their buy-in of 250 million $WLFI for $25 million worth of USD Coin, a digital currency pegged to the U.S. dollar, came three days before Trump’s Justice Department announced that it was
disbanding a team
that had previously investigated cases of crypto fraud, abandoning any “litigation or enforcement actions that have the effect of superimposing regulatory frameworks on digital assets.”

It just so happens that DWF once came close to being removed from Binance, the biggest global crypto exchange by daily trading volume, when a team of investigators at the company concluded it was engaged in fraud known as “wash trading,” or self-trading to create the false impression of market activity in order to lure investment. But Binance overruled that conclusion, and the firm has denied any fraud. It did not immediately return a request for comment.

DWF’s deal with World Liberty Financial could theoretically help shield it from regulatory scrutiny under the Trump regime. The investment came with the
announcement
that the firm would soon establish a New York office, a move that that it said in a post on X “reflects our deep confidence in the U.S. as a driving force in institutional crypto adoption.” The strategic purchase instantly made the DWF the 23rd-largest holder of $WLFI tokens, which, according to
terms and conditions
These tokens are “non-transferable and permanently locked within a wallet or smart contract.” World Liberty suggests that buyers should “acknowledge the possibility that after paying for the token, your stake in it might decrease, with no guarantee of future resell opportunities.” Essentially, purchasers of $WLFI cannot presently trade them on the public market, and it’s uncertain whether such an opportunity will arise later or if these tokens will hold any financial worth.

The managing partner of DWF is Andrei Grachev, born in Uzbekistan, who on the previous day handled the transaction.
posted
To X, “We’re creating history right now,” followed by, “Stay tuned.” The following day, after the DOJ shut down their cryptocurrency investigation division, he said this.
posted
I’m really liking the current state of the market; it’s incredibly unpredictable, like the true Wild West.
told
A supporter remarked, “It’s criminal season, man.” Grachev previously headed the Moscow division of the cryptocurrency exchange Huobi, which is now known as HTX. This office was established through a collaboration with Russia’s state-run VEB bank, focusing on advancing crypto and blockchain technology. However, he resigned from his position at Huobi amid allegations surrounding him.
alleged link
to a
$4 billion crypto pyramid scheme
and accusations of failing to repay
debts totaling more than $150,000
. Before that, he was a vice president at the Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (RACIB), a nonprofit closely linked to VEB.

As noted in research from Accountable.US, DWF has come under scrutiny for alleged market manipulation. In 2024,
The Wall Street Journal
reported
In response to a 2023 lawsuit filed by the SEC regarding potential mismanagement of user funds and illicit activities within the U.S., Binance strengthened its market monitoring unit and brought in external financial experts to detect fraudulent behavior. These specialists discovered that DWF, a high-profile member of Binance’s clientele, had allegedly manipulated the prices of YGG along with at least six additional cryptocurrencies, generating more than $300 million through wash trading during 2023—a clear breach of Binance’s policies. Following this finding, which prompted recommendations for DWF’s removal from the platform, Binance decided to have their investigative squad scrutinized further. Ultimately, they determined there wasn’t enough proof supporting claims of market manipulation and subsequently dismissed the head investigator; several other members were also let go soon after.

Tony Carrk, the executive director at Accountable.US, states, “There seems to be something suspicious about the Trump administration shutting down its cryptocurrency crime task force just a single business day after a Russian-linked international investor, who has been accused of unlawful trading practices, invested millions in one of the secretive Trump family’s blockchain projects.”
Rolling Stone
President Trump has intentionally kept the gateway to possible corruption and personal gain unlocked by keeping connections to his mostly unchecked cryptocurrency ventures, even expanding them after assuming office. Should the President’s enterprises persist in accepting foreign funds in such an opaque manner, particularly from potentially illicit sources, he needs to clearly disclose what those foreign contributors expect as compensation.

Grachev didn’t promptly respond to inquiries regarding what led to DWF’s $25 million investment or the type of collaboration he anticipates between DWF and the Trump family’s cryptocurrency platform.

While DWF has
denied
Any wash trading activity promotes itself as a “market maker,” a term also employed by four cryptocurrency financial service companies.
ensnared in a sting
Last October, following the creation of their own token called “NexFundAI” by the FBI, several companies were brought onboard to endorse this new digital asset. Among these businesses, some openly promoted illicit strategies for increasing trade volumes via wash trading activities. One firm involved—CLS Global FZC LLC—faced allegations related to engaging in or being part of schemes aimed at executing wash trades on behalf of NexFundAI.
sentenced
facing a penalty of $428,059 along with three years of probation shortly after the DOJ disbanded its cryptocurrency fraud task force.

Regarding Binance, which faced a ban in the U.S. in 2019 due to regulatory issues but still operates through a limited U.S. subsidiary (not accessible in 16 states and territories), there might soon be a conclusion to the series of legal challenges and enforcement measures taken against the platform by American authorities. For instance, back in February, the SEC took action.
paused the 2023 lawsuit
that had triggered the internal probes into potentially fraudulent self-trading by DWF and other Binance clients.

Representatives for the Trump family have had discussions regarding World Liberty Financial.
gaining an ownership share in Binance’s U.S. division
While the firm’s billionaire creator and ex-CEO, Changpeng Zhao, lobbies the government for a pardon concerning his 2023 conviction for breaching U.S. money-laundering regulations, he agreed to resign from his role and spend four months in jail as part of his plea arrangement. Meanwhile, Binance, which likewise admitted guilt, faced penalties.
$4.3 billion fine
Binance officials are pushing for decreased American regulatory scrutiny over cryptocurrencies as they work to strengthen their position within the nation and negotiate an agreement with World Liberty. An option being considered involves
The Wall Street Journal
reported, it would involve the exchange listing what is known as a ”
stablecoin
” token from the Trump family venture, a move that could add billions to their wealth. (Weeks ago, World Liberty unveiled
USD1
, a stablecoin tied to the U.S. dollar.)

Wealthy supporters and businesses in the cryptocurrency sector have been vocal critics of the Securities and Exchange Commission’s strict regulatory stance on cryptocurrencies during this presidential term.
Joe Biden
, poured
Hundreds of millions in dollars
into Trump’s campaign funds during the previous year. In return for their backing, he has eased regulations, appointed cryptocurrency-supportive financial officials, and advocated for initiatives such as a
strategic government reserve
To keep Bitcoin and other blockchain-based assets. These tokens significantly increased in value after Trump’s re-election in November, however, much of this growth has since faded partly because of the economic disruptions caused by the president’s inconsistent tariff announcements.

Despite this, Trump and his crypto-supporting associates have kept a tight alliance with the sector. The SEC and DOJ have shown they can significantly alter their policies to accommodate dubious business figures such as Sun, Zhao, and Grachev, who previously showcased their wealth through an affluent photograph.
DWF-branded Lamborghini
On X, unsurprisingly, DWF’s stablecoin initiative, Falcon Finance, has independently forged connections with Trump’s cryptocurrency ventures. A week following DWF securing $25 million worth of $WLFI on April 11, Grachev noted this development.
wrote
On X: “Excited to share that @FalconStable has accepted $USD1 from @worldlibertyfi as valid collateral.” Earlier this week, he highlighted the announcement about DWF’s expansion into New York.
shouting out Eric Trump
.

It seems like despite causing chaos and constitutional crises in Washington, the president can still form alliances with those who prioritize protecting his financial interests.