Trump Family’s DT Marks DeFi Slashes World Liberty Financial Stake by 20%

In a quiet yet significant financial maneuver, DT Marks DEFI LLC, a company tied to the Trump family, has reduced its equity stake in the cryptocurrency project World Liberty Financial (WLF).

The company’s equity interest dropped from 60% to 40%, according to updates found on the project's official website. This change, discovered within the last 11 days, marks a continued adjustment in the Trump family’s involvement in the venture.

As of December 2024, DT Marks DeFi held a 75% equity stake in World Liberty Financial's holding company. However, by late January this year, that stake had already been reduced to 60%, marking the second time the Trump family has trimmed its holdings in the project.

DT Marks DeFi LLC is listed as a "related person" on World Liberty Financial along with Donald Trump, his sons Eric Trump and Donald Jr, and World Liberty Financial Director Zachary Folkman, among others, according to an October 2024 filing with the Securities and Exchange Commission.

World Liberty Financial, launched in late 2024, has been a central focus in the Trump family’s foray into decentralized finance. The project includes its own cryptocurrency token, WLFI, and a stablecoin USD1, which is backed by U.S. dollar deposits, Treasuries, and other cash equivalents.

The stablecoin USD1 has been used in major transactions, including a $2 billion investment from Abu Dhabi’s MGX investment firm.

Recently, USD1 was also distributed in an airdrop to WLFI holders, highlighting the project's activity in the crypto ecosystem. USD1 maintains a total supply of 2.2 billion as of June 19, The Block's Data Dashboard shows.

Financial Implications and Growing Scrutiny

The reduction in equity interest could imply significant financial gains for the Trump family. Estimates suggest that the sale of the 20% equity interest may have brought in approximately $190 million, with Donald Trump himself potentially pocketing $135 million. This financial shift aligns with the Trump family’s broader strategy of monetizing their crypto ventures.

However, the project has not been without controversy. The initial launch of World Liberty Financial promised a "financial revolution," but its tokens were structured in a way that they could not be resold. Furthermore, 75% of the project's proceeds after the first $30 million were allocated directly to Trump family members. These financial arrangements have drawn criticism and raised questions about transparency and ethical practices in the operation of the venture.

Political and Ethical Concerns

The Trump family’s involvement in cryptocurrency has been under scrutiny for some time. Earlier this year, Democratic senators raised concerns about the administration’s crypto dealings, particularly with regard to compliance obligations involving Binance.

Additionally, Trump’s hosting of crypto-themed dinners in May sparked further debate, with critics alleging that such events could grant investors undue influence over the president in exchange for their support of his crypto ventures.

Despite these concerns, World Liberty Financial continues to operate actively in the crypto space, backed by a network of Trump family-controlled entities and associates. The project’s evolving structure and financial outcomes will likely remain a topic of interest in both the political and financial spheres.