Trump-Linked DeFi Project Denies Selling Amid $250M Ethereum Transfers– World Liberty Financial Clarifies Asset Movements as Speculation Mounts
World Liberty Financial, the DeFi project associated with former U.S. President Donald Trump, has made significant cryptocurrency transfers totaling over $250 million. The movement of Ethereum, Wrapped Bitcoin (WBTC), and other digital assets from its multi-signature wallet on Monday has sparked speculation about potential sell-offs. However, the project has reassured its community that these transfers are part of routine treasury management.
In a statement posted on X (formerly Twitter), World Liberty Financial clarified its actions: “We’re making routine movements of our crypto holdings as part of regular treasury management, payment of fees, and working capital requirements. To be clear, we are not selling tokens—we are simply reallocating assets for ordinary business purposes.”
Massive Outflows Raise Questions
According to data from Arkham Intelligence, the project’s treasury, which held over $400 million in assets as of February 2, now contains less than $90 million. The most significant outflows included nearly $168 million in Ethereum and $64 million in Wrapped Bitcoin—a tokenized version of Bitcoin that operates on the Ethereum blockchain.
While most of these assets were transferred to unknown addresses, a notable portion of the Ethereum funds was sent to a wallet labeled by Arkham as belonging to Coinbase Prime, the institutional-grade brokerage service of the U.S. cryptocurrency exchange. This has led to speculation that a portion of the holdings may have been moved for potential liquidation.
Trump’s Crypto Venture and Market Reactions
This is not the first time World Liberty Financial has reassured investors about its asset management strategies. The project previously made a similar statement on January 14, following concerns about large token transfers. Just a week after that announcement, the platform made headlines by purchasing over $100 million worth of crypto assets, including $47 million each in Ethereum and Wrapped Bitcoin, as a symbolic gesture to commemorate Donald Trump’s inauguration as the 47th President of the United States.
Amidst these developments, the crypto market has been volatile, influenced by broader economic events, including Trump’s newly imposed tariffs on Canada, Mexico, and China. The tariffs, set to take effect on Tuesday, initially triggered a market downturn, but cryptocurrencies like Bitcoin and Ethereum have since rebounded.
Extended Token Sale and Project Leadership
Beyond Ethereum and Wrapped Bitcoin, World Liberty Financial also moved smaller amounts of Aave (AAVE), Ethena (ENA), Movement (MOVE), Chainlink (LINK), and Ondo (ONDO). Despite the significant fund transfers, the platform is still in the midst of an extended token sale, with over 1 billion WLFI tokens available at $0.05 each.
World Liberty Financial brands itself as a project inspired by Donald Trump, who serves as the Chief Crypto Advocate. His sons, Donald Jr., Eric, and Barron Trump, are also involved in the initiative, holding the titles of “Web3 Ambassadors” for the project.
As the crypto community continues to watch the project’s treasury movements, questions remain about its long-term financial strategy. Whether these transfers are truly routine or signal deeper shifts in the platform’s holdings, World Liberty Financial’s close ties to Trump ensure it will remain a focal point in both the political and crypto spheres.
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