$89M Lost in Crypto Crash– Trump-Backed World Liberty Finance Bets Another $21M- Is This Genius or Madness?

World Liberty Finance, an investment firm with Donald Trump as a shareholder, has expanded its crypto portfolio with major acquisitions. Some purchases have quickly gained value, but overall, market conditions have caused significant losses. This raises concerns about the firm’s long-term strategy and risk management. Meanwhile, Trump’s recent statements on cryptocurrency policies have created uncertainty. His mixed messages have fueled both hope and doubt about how his administration could shape the market.

World Liberty Finance Doubles Down on Ethereum

Trump-backed crypto firm World Liberty Finance has added nearly $21 million worth of crypto to its holdings. According to the Spotonchain X post, WLFI used $25 million of USDC and a newly created multi-signature wallet. The main purchases consisted of $10 worth of Ethereum (ETH) and $10 Million worth of Wrapped Bitcoin (WBTC). Moreover, WLFI also purchased $1.5 million worth of Movement (MOVE). World Liberty Finance’s purchases only amounted to 21.5 of the transferred amount, and $3.5 million USDC remained in the wallet.

Donald Trump's World Liberty Financial (@worldlibertyfi) is back to buying $ETH, $WBTC, and $MOVE!

In the past 45 minutes, the fund moved 25M $USDC to a new multi-sig wallet and purchased:

• 4,468 $ETH ($10M) at $2,238
• 110.6 $WBTC ($10M) at $90,420
• 3.42M $MOVE ($1.5M) at… https://t.co/pyElkjbFwf pic.twitter.com/azgZeglmQA

— Spot On Chain (@spotonchain) March 5, 2025

Based on the information provided by Arckham Intelligence with the latest investment, WLFI has nearly doubled its ETH holdings. World Liberty Finance now holds over 7,000 ETH, whereas on Monday, it had 2,200. Moreover, its Ethereum holdings have increased 180% just over the past two days. As such, Ethereum is now the biggest investment of WLFI. This investment company now holds exactly 7,094 ETH, which translates to approximately $16.2 million.

MOVE Surges 26%: Small Investment with Big Returns?

The MOVE token represented a smaller portion of the WLFI’s crypto investment. However, the token experienced a 26% surge during the hours after the purchase. Move is the native token of the movement network. Movement is an Ethereum virtual machine-compatible Blockchain programming language. In addition to MOVE, USDT, ETH, and WBTC, the Trump-backed firm also holds six other tokens. These include 10 billion WhiteRock, which equals $3.4 million, and 40 million Tron, which is worth nearly $10 million. Other tokens in World Liberty’s holding include ONDO, COLLE, GROK, and HOPPY.

Trump’s Crypto Firm Faces $89M Loss!

Although MOVE has seen a good value appreciation, the same could not be said about the Trump-backed crypto firm’s other holdings. Based on the information reported by Lookonchain, WLFI has seen a whopping $89 million loss. Ironically, this loss was caused by the recent downtrends that started in the first month of Trump’s administration. The trump tariff policy has not worked out greatly for the crypto market. This is because, with worries about the global trade war, investors distance themselves from risky assets like crypto.

Trump also had some good news for the crypto community over the weekend. On Sunday, Trump mentioned that he had ordered his working group to work on the United State’s crypto reserve. This news sent the market into an explosive uptrend, but soon, the market crashed again as the tariffs went into effect on Monday. Furthermore, as Trump and his people own more than 60% of World Liberty Finance, some have doubted his motivations. Some believe he has been just hyping up the market to increase the value of tokens in WLFI’s holding.

WLFI and the Trump Effect: Politics in Crypto

Trump’s crypto policies introduce another layer of complexity to WLFI’s future. With the administration supporting a U.S. crypto reserve, regulatory clarity and institutional interest could rise. This shift might foster market stability and encourage long-term growth. However, fears of market manipulation persist, especially due to WLFI’s close ties with Trump. Investors must remain cautious, as politically driven price surges may not sustain growth. Short-term profits can be misleading in an unpredictable regulatory landscape. Moreover, If tariffs continue pressuring financial markets, crypto may struggle with further downturns.