Donald Trump Launches Cryptocurrency Project World Liberty Financial

Donald Trump Ventures into Cryptocurrency with World Liberty Financial

Donald Trump, along with his sons, has been hinting at an upcoming cryptocurrency project for weeks, generating curiosity among enthusiasts and investors alike. However, specific details regarding the initiative have remained sparse in public discussions. Behind the scenes, the former U.S. president’s close associates have been actively promoting a white paper for a venture named World Liberty Financial, which CoinDesk has managed to obtain excerpts from.

The document and additional reports suggest that the project aims to create a borrowing and lending service that bears a striking resemblance to Dough Finance, a recently compromised blockchain application developed by a team that includes several members affiliated with World Liberty Financial. The project is notably being led by Trump’s three sons, including 18-year-old Barron, who is branded as the project’s “DeFi visionary.” The team also comprises financiers and e-commerce influencers.

A source familiar with the plans revealed that the project will introduce a new cryptocurrency known as WLFI, which is to be a non-transferable governance token. This transfer restriction could hinder speculative trading, adding a layer of complexity to the asset’s circulation.

The white paper emphasizes that World Liberty Financial “highlights the power of blockchain in an accessible way.” While the application is not yet fully operational, an examination of a previously deleted codebase on GitHub indicates that the early stages of the project may have utilized code directly sourced from Dough Finance, which recently suffered a hack resulting in a loss of $2 million. It remains unverified whether subsequent versions of the application still incorporate this earlier code, and there is no evidence suggesting that any known vulnerabilities from Dough Finance have been carried over into the new project’s framework.

Key figures in the World Liberty Financial initiative, Zachary Folkman and Chase Herro, are identified in the white paper as the head of operations and the data and strategies lead, respectively. Reports indicate that both were integral in the creation of Dough Finance, with Herro previously linking to Dough Finance’s Telegram group in his bio on the messaging platform. Additionally, Octavian Lojnita, the lead on smart contracts for the project, also has a background with Dough Finance, as shown in his online resume. The pseudonymous front-end developer, known as Boga, is credited as an author in Dough Finance’s source code under the alias 0xboga.

A limited liability corporation for World Liberty Financial is registered under Folkman’s name, who, along with Herro, co-created Subify—a platform marketed as a censorship-free alternative to Patreon and OnlyFans, both of which enable customers to compensate content creators, particularly in the adult content sphere. Folkman has previously registered a company named Date Hotter Girls LLC and has shared seminars on YouTube that focus on dating advice.

Attempts to reach Folkman, Herro, World Liberty Financial, and the Trump campaign for comments have gone unanswered.

Details surrounding Trump’s entry into decentralized finance (DeFi) have been notably scarce until now. The Trump family has teased the initiative on social media but offered little more than the project’s name. Initially announced under the title The DeFiant Ones, the project has since been rebranded as World Liberty Financial.

According to the white paper, the initiative will feature a “credit account system” that operates on the DeFi platform Aave and utilizes the Ethereum blockchain, facilitating decentralized borrowing and lending.

Governance tokens like WLFI typically grant their holders the ability to influence the management of the crypto project. In this case, users of the platform will have the opportunity to suggest and vote on the addition of new DeFi lending markets or the integration of new blockchains.

The white paper also outlines plans for an “easy-to-use interface” designed to provide access to WLFI as a “smart account” or a brokerage service. The track record of previous attempts to establish crypto brokerage services has been mixed; for instance, Voyager Digital, which provided such services, declared bankruptcy in 2022, resulting in significant losses for its customers. More traditional financial institutions have started to explore offering brokerage services to crypto clients but have yet to deeply engage in DeFi.

The Leadership Team Behind World Liberty Financial

At the helm of the World Liberty Financial initiative is Donald J. Trump, who has taken on the title of “Chief Crypto Advocate.” His sons, Eric Trump and Donald Trump Jr., are actively involved as “Web3 Ambassadors” and appear to be the driving force behind the project.

The leadership team also includes individuals outside of Trump’s family. Alongside Folkman, Herro, Lojnita, and Boga, the team features long-time Trump associate and prominent property developer Steve Witkoff, who is designated as “Institutional Investment,” his son Zach Witkoff, who handles “Intelligence,” and Alex Golubitsky, who serves as “Legal Counsel.” Golubitsky and his legal partner, Gabriel Shapiro, run the crypto governance advisory firm MetaleX Pro, which has disclosed that it will receive 1.3% of World Liberty Financial’s forthcoming token, $WLFI.

Folkman and Herro, who is also known as “Chase Hero,” have been long-time friends and business partners. Their ventures include Subify, and they have previously run “mastermind groups”—exclusive networking clubs with high entry fees—and sold online e-commerce courses. Herro has been featured on popular podcasts, including Logan Paul’s “Impaulsive,” where he discussed his past incarceration related to drug offenses and his journey to becoming a “self-made businessman.” Paul is currently facing a class action lawsuit related to his failed CryptoZoo project. Court records indicate that Herro owns a 34-foot boat named “Clickbait.”

Data from Open Corporates shows that Folkman, using the alias Zack Bauer, previously operated the dating advice platform “Date Hotter Girls” in collaboration with another individual, Rob Judge. During his time with Date Hotter Girls, Folkman conducted “masterclasses,” including one focused on how to “Become the Ultimate Alpha Male.” Beginning in 2015, Herro and Folkman created “The Watchers,” a Facebook page and YouTube channel with 2,280 subscribers dedicated to sharing cryptocurrency information and entrepreneurship advice. However, their last video was uploaded four years ago. Herro previously managed a crypto trading firm called “Pacer Capital,” which appears to no longer be operational.

Engaging with Crypto Voters

This initiative marks a significant pivot for Trump, who during his presidency expressed skepticism towards digital currencies, famously describing Bitcoin (BTC) as “based on thin air.” Now, with a campaign pledge to transform the United States into the “crypto capital of the planet,” the former president seeks to bolster his appeal among an industry responsible for over half of all corporate campaign contributions in this election cycle. This shift comes after Trump successfully sold multiple waves of Trump-themed non-fungible tokens (NFTs), some offering purchasers raffle tickets for a dinner with him or similar incentives, with the fourth batch recently released.

Cryptocurrency firms have contributed $119 million to the 2024 election cycle, second only to the fossil fuel sector in terms of spending. Among the top ten corporate donors in this election are Coinbase and Ripple, with Coinbase leading the pack. The crypto industry has also made its presence felt through strategic funding from Fairshake, a super political action committee, and its affiliated PACs, which claim 26 victories in the 2024 primaries.

Trump and other Republicans are attempting to position themselves as champions of the crypto industry, promising to replace unpopular regulators and create an environment where entrepreneurs can launch products without the looming threat of lawsuits or subpoenas from regulatory bodies like the Securities and Exchange Commission. In contrast, Democrats have shown a more divided stance on the issue; while some prominent lawmakers, such as Senator Chuck Schumer, advocate for legislation to clarify the regulatory landscape, others continue to express opposition to digital assets. Vice President Kamala Harris, the Democratic nominee, has remained silent on the topic of cryptocurrency and its implications.

Nikhilesh De contributed reporting to this story.