A cryptocurrency startup led by Donald Trump’s sons, Donald Jr. and Eric Trump, is raising concerns among some of Trump’s staunchest allies in the cryptocurrency industry.
What Happened: In recent weeks, the Trump brothers have been promoting their upcoming cryptocurrency company, World Liberty Financial.
However, the venture has suffered a series of setbacks, including a hacking incident involving the Trump family and concerns over World Liberty’s close ties to a blockchain company that lost $2 million in a security breach, Politico reported.
“This is a huge mistake,” Nick Carter, a partner at crypto venture capital firm Castle Island Ventures and a Trump supporter, told the outlet.
“It appears President Trump’s inner circle is simply using his recent support for crypto to make money in a naive way, and frankly, it looks like they’re squandering a lot of the goodwill they’ve built up with the industry,” he added.
Earlier this week, accounts belonging to President Trump’s daughter-in-law and daughter-in-law were compromised and used to promote a crypto token purportedly from the Trump brothers’ startup company.
Related article: Trump vs. Harris: Majority of US cryptocurrency holders support this candidate
As a result, the company has warned individuals not to click on links shared from profiles or purchase tokens.
According to the media, World Liberty CEO Zach Folkman said, “We are bringing together the best talent in the industry to build a world-class decentralized finance platform.”
He also said that X’s unauthorized posts and fake Telegram channels had been reported to both platforms. Folkman confirmed that Eric Trump’s wife, Lara, and Donald Trump’s daughter, Tiffany Trump, were not involved in the project.
Additionally, there are doubts about the team at World Liberty Financial, which the Trump brothers’ company has distributed a white paper outlining a lending service similar to DowFinance, the blockchain app that was hacked in July for $2 million.
The four people who founded Dough Finance are listed as team members at World Liberty Financial.
Despite these issues, Donald Trump has vowed to make the United States the “crypto capital of the earth” if he wins the presidential election again in November, leading to claims that his crypto policies could favor his family.
Why it matters: The Trump family’s entry into the cryptocurrency industry has drawn skepticism and concern, especially given the recent hacking scandal and their ties to previously compromised blockchain companies.
The venture could impact the reputation and acceptance of cryptocurrencies in the political sphere, especially if it is seen as a way for the Trump family to profit from Donald Trump’s return to the presidency.
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