Trump-Linked WLFI Reports Over $145M in Crypto Losses as USD1 Stablecoin Sparks Political Controversy

World Liberty Financial (WLFI), a digital asset investment initiative reportedly backed by the Trump family, has recorded over $145 million in unrealized losses across its cryptocurrency holdings, according to blockchain analytics firm Arkham Intelligence.

As of April 14, WLFI’s portfolio—initially valued at approximately $347 million—has shrunk to just over $102 million, with daily losses averaging $580,000.

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Ethereum Losses Drive Underperformance

The biggest losses stem from the project's Ethereum investments, with over $114 million in cumulative losses on ETH alone. Ethereum’s sharp decline—from $2,879 (when Eric Trump publicly endorsed buying ETH) to around $1,635—has contributed significantly to the portfolio’s downturn, sparking criticism of the Trump family’s investment acumen.

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WLFI Expands Into Stablecoins: Introducing USD1

Despite ongoing losses, WLFI is aggressively expanding its crypto operations. The project has recently launched a proprietary stablecoin called USD1, raising red flags among policymakers.

During a U.S. House Financial Services Committee hearing, Rep. Maxine Waters warned that USD1 could potentially be used to "replace government-backed payment systems" and criticized what she called "a shadow attempt to privatize the U.S. dollar".

Images bearing the USD1 logo have already been spotted on platforms like Coinbase, Binance, and CoinMarketCap, though WLFI has not issued any formal announcement.

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WLFI's Ongoing Crypto Exposure

According to Arkham, WLFI currently holds a diversified portfolio that includes:

• Bitcoin (BTC)

• Ethereum (ETH)

• Tron (TRX)

• Ondo Finance (ONDO)

• Avalanche (AVAX)

• And a new position in Sei (SEI), with 4.89 million tokens worth $775,000 recently acquired.

The project’s moves suggest ongoing commitment to digital assets despite market volatility and regulatory uncertainty.

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Political and Market Implications

WLFI’s massive losses and stablecoin ambitions are likely to become a flashpoint in the U.S. political and regulatory debate around crypto. With Trump actively campaigning and the 2024 election cycle heating up, analysts will be watching closely how USD1 and WLFI factor into the broader crypto policy narrative.