The incident raises important questions about risk management and the long-term sustainability of high-risk crypto ventures.
A Monday report from Arkham Intelligence revealed that World Liberty Financial Inc. (WLFI), a cryptocurrency venture linked to U.S. President Donald Trump, is grappling with substantial unrealized losses.
Its portfolio has declined by approximately $110 million, with investments across nine crypto assets falling from an initial value of $336 million to around $226 million.
These losses remain on paper, as the assets have not been sold. They stem from a broader downturn in the crypto market and concerns over WLFI’s high-risk strategy.
As President Trump’s investment venture faces mounting challenges, scrutiny grows over the recently announced crypto reserves and the project’s long-term viability.
Other major holdings include 40.718 million Tron (TRX) tokens, currently valued at $9.55 million after a 2.65% decline, and 10 billion WHITE tokens, now worth $5.99 million, marking the largest drop at 20.89%.
Snapshot of World Liberty Financial’s crypto holdings / Source: Arkham
WLFI’s reserves also include 5.013 million AETHUSDC, which has maintained its value, and 7.581 million MOVE tokens, whose value remains undisclosed.
Previous Aggressive Crypto Acquisitions
The latest downturn follows a crypto buying spree in January, coinciding with President Trump’s inauguration.
The firm acquired over $100 million in digital assets during this period, including 14,403 ETH at $3,333 per token and 94.94 WBTC for $9.84 million.
BREAKING: Trump-Backed World liberty financial buys 94.94 $WBTC for $9.84M, now holding $57M in total. pic.twitter.com/nkbQK22u47
These purchases included 4,468 ETH at approximately $2,238 per token, 110.6 Wrapped Bitcoin (WBTC) at around $90,420 each, and 3.42 million Movement Network (MOVE) tokens at $0.439 per token.
Impact of Economic Policies and Market Volatility on Crypto Investments
The reasons for these crypto losses are complex. Market analysts blame the decline on increased regulatory scrutiny in major economies, economic uncertainties, and liquidity crises.
For example, the Trump administration recently imposed 25% tariffs on imports from Canada and Mexico and a 20% levy on Chinese imports. In response, Canada implemented reciprocal tariffs on U.S. goods, escalating global trade tensions.
BREAKING: Trump’s 25% tariffs on Canada and Mexico, and 20% on China, are now in effect
Historically, tariffs have fueled inflation, disrupted supply chains, and slowed economic growth. The resulting uncertainty has impacted risk assets, including both stocks and cryptocurrencies.
The ongoing turbulence has affected World Liberty Financial and the broader cryptocurrency ecosystem, as over $450 million in crypto positions were recently liquidated.
BREAKING:
$450,000,000 WORTH OF CRYPTO POSITIONS WERE LIQUIDATED IN THE LAST 24 HOURS.
Other major cryptocurrencies have also declined sharply. Ripple (XRP) dropped 3.26%, Solana (SOL) fell 6.16%, and Cardano (ADA) lost 4.67%.
Dogecoin (DOGE) experienced a nearly 6% decline during the same period.
World Liberty Financial’s Impact on U.S. Crypto Reserves
Meanwhile, as President Trump’s administration moves toward establishing a strategic crypto reserve for the United States, critics have raised concerns over the lack of a clear strategy beyond managing seized assets.
Trump’s investment venture with World Liberty Financial has already shown its susceptibility to market fluctuations.
This brings into question the viability of the U.S. government’s crypto reserves, which include holdings in Ethereum, Bitcoin, Solana, XRP, and Cardano.
If WLFI’s assets continue to decline, what would prevent the country’s crypto reserves from suffering a similar fate?
Frequently Asked Questions (FAQs)
How does World Liberty Financial’s strategy differ from that of traditional crypto investment firms?
WLFI follows a high-risk, aggressive acquisition strategy, often making large purchases during politically significant events. Unlike traditional firms that hedge against volatility, WLFI’s approach prioritizes rapid accumulation, making it more vulnerable to market downturns.
Could WLFI’s crypto struggles impact broader U.S. financial policies?
Given its reported ties to President Trump and discussions around U.S. crypto reserves, WLFI’s losses could influence future regulations. If market instability continues to erode WLFI’s portfolio, policymakers may rethink government-backed crypto investments.
Is there a possibility that WLFI will pivot to a different investment approach?
While no official statement has been made, continued losses may force WLFI to adjust its strategy. This could involve shifting toward stable assets, diversifying into non-crypto investments, or seeking external funding to mitigate risks.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear 
BREAKING:
Trump-Backed World liberty financial buys 94.94 $WBTC for $9.84M, now holding $57M in total. pic.twitter.com/nkbQK22u47
: World Liberty Financial, just bought $25M worth of $WBTC, $ETH, and $MOVE. pic.twitter.com/LbLsFCbOsV