In a step that has rattled investor confidence, World Liberty Financial Inc. (WLFI), a cryptocurrency fund reportedly tied to former US President Donald Trump, has dumped over 4,500 Ethereum (ETH), with an estimated loss of $12.5 million in the face of ongoing market volatility. The massive sale has raised fears of potential internal financial distress and its effects on the overall crypto market, as Ethereum is under pressure and attempts to stay stable amidst increased selling.

WLFI’s Ethereum Dump

World Liberty Financial Inc. (WLFI), a fund reportedly owned by US President Donald Trump, has sold its Ethereum (ETH) holdings for a loss of about $12.5 million. Since April 2, over 4,500 ETH have been moved from WLFI-associated wallets to large centralized exchanges like Coinbase and Kraken.  The timing of the sell-off has fueled speculation, particularly because Ethereum is seeing extreme market fluctuations and growing fears of a 30% price correction.

According to data from Arkham Intelligence, on April 9, a WLFI wallet sold 5,471 ETH for approximately $1,465 per token and raised about $8.01 million. The sale, though, came with a huge loss of more than $125 million, considering that the ETH had been bought with an average of $3,259. The huge sell-off indicates worsening sentiments in the overall crypto space.

The fund moved ETH in several tranches starting on April 2, first transferring $5 million worth of tokens, then following up with two more large transfers. Observers say these deliberate movements suggest a strategic liquidation plan, rather than an impulsive reaction to short-term price swings.

On-chain data revealed that ETH dropped around 30% in April, hitting a low of $1,385 on the same day, and WLFI’s decision to get out during this meltdown reflects an increasing risk-averse attitude.  With rising geopolitical tensions, partly fueled by Trump’s worldwide tariff drive and impending fears of a US recession, WLFI’s action could be a sign of waning short-term confidence, even among large crypto-linked players.

The sale is a huge loss for World Liberty, which had shelled out $210 million on 67,498 ETH at an average cost of $3,259 per token. With ETH selling at $1,400, the fund has an unrealized loss of over $125 million.

Trump Connection Adds Political Overtones to Financial Loss

The selloff has attracted substantially more attention following WLFI’s name.  Although not formally confirmed, various reports have reported associations of the fund to Donald Trump-linked wallets based on blockchain information and prior transactions. Even Arkham Intelligence had earlier linked the same address to Trump’s on-chain financial transactions through NFT and token transfers.  Therefore, the $12.5 million loss is not just being viewed as a financial loss for WLFI, but as a symbolic loss for Trump’s entry into the digital asset space.

While the WLFI has not officially confirmed any direct connections to the previous president, blockchain analysis has determined that the wallet that was used in the liquidation is associated with companies in Trump’s broader financial network.

Conclusion

World Liberty Financial’s Ethereum sell-off illustrates how politics is getting entangled in cryptocurrency, with concerns over market manipulation and politically connected groups’ influence. The $12.5 million loss highlights the necessity for more transparency in cryptocurrency markets. As Ethereum’s price remains volatile, this situation could trigger demands for tighter controls on politically connected crypto investors, highlighting the risks in the fast-evolving crypto space.