World Liberty Financial at Stake: Alleged Token Swaps Could be The Road to Pitfall

World Liberty Financial is under the allegation of illegal token sales. Not only so. This Trump-backed crypto project is also charged with preferential deals with many investors.  

Illegal actions like swapping tokens against other assets are rumored to be linked to the project body. However, WLF’s X handle recently clarified that they only make “routine movements as a part of usual treasury management.”  

World Liberty Financials’ Defense  

In a recent response, WLF denied all acquisitions. According to them- people misunderstood their routine asset reallocations as fraud token sales.  

But their defense is that there are no active token sales. But vital stats say otherwise.  

In a recent report, it is mentioned that WLF swapped around 10 million worth of tokens against other blockchain asset tokens. What’s worse is that they charged a flat 10% fee for the illegal token transaction.  

More troubles are on their way  

Amidst search controversy, PILs raise concern regarding the weird and fishy relationship between Liberty Financial and specific investors and crypto projects.  

Various agencies report that investors putting in large slash received preferential treatment, especially those who brought more than $15 million to the table.  

Link with the past  

Such preferential treatment has been a gloomy part of traditional investment and trading practices from the empirical past. Long back such practices were called quid pro pro. You will find incidents like this during the last tenure of the Trump administration.  

Unnerving Findings 

In a recent Reuters study, some alarming facts surfaced. Retail investor in crypto, Mike Dudas claimed that he purchased over $145,000 words tokens from World Liberty Financial.  

Since the US President partly owns it, the company easily came under the radar. The movements of the firm became more questionable when they started giving their shareholders tokens that leveraged their authority to vote on decisions regarding product features and marketing. 

Investors’ Take 

The investors say that they had friendly terms with the advisors of the project. Samsung also said that they wanted to be associated with decentralizing finance and hence they offered as much as they could.  

Decentralized finance is a network that runs on only crypto but without any functioning gatekeeper like a bank.  

Dudas isn’t Alone 

WLF also roped in other investors from locations like Gibraltar, Puerto Rico, etc. Investors from these parts of the world also bought millions of tokens from the company, partly owned by Trump.  

What is it Now? 

WLFI has generalized token trading. Around 24 billion WLFI tokens are priced at $0.05 each.  

What triggered the allegations?  

Allegations started floating around 15 days after World Liberty cracked the sales of around 1/5 of the $100 billion token supply. The distribution earned them $254 million.  

Adjacently President Donald Trump also assumed his office.  

What’s In the Future for Them? 

World Liberty Financial will offer an uncertain future. The organization has to deal with this controversy first. Meanwhile, they have to finish the target of their planned launch within Q3, 2025.