{"id":8784,"date":"2025-05-19T19:02:05","date_gmt":"2025-05-19T19:02:05","guid":{"rendered":"https:\/\/cryptonewsdesk.com\/?p=8784"},"modified":"2025-05-19T19:02:09","modified_gmt":"2025-05-19T19:02:09","slug":"trumps-wlfi-crypto-venture-under-fire-after-founders-linked-to-abandoned-hacked-exchange","status":"publish","type":"post","link":"https:\/\/cryptonewsdesk.com\/index.php\/2025\/05\/19\/trumps-wlfi-crypto-venture-under-fire-after-founders-linked-to-abandoned-hacked-exchange\/","title":{"rendered":"Trump\u2019s WLFI Crypto Venture Under Fire After Founders Linked to Abandoned Hacked Exchange"},"content":{"rendered":"\n<p>Donald Trump\u2019s foray into cryptocurrency is once again mired in controversy as a new report reveals that the key figures behind <strong>World Liberty Financial (WLFI)<\/strong> a Trump-backed crypto venture previously operated a failed and hacked crypto platform and failed to compensate its users.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Reuters Report Uncovers Shady Past of WLFI Founders<\/h3>\n\n\n\n<p>A Reuters investigation published on <strong>Monday, May 19<\/strong>, has brought to light troubling details about <strong>Zak Folkman<\/strong> and <strong>Chase Herro<\/strong>, two prominent figures behind WLFI. Before their involvement with WLFI, Folkman and Herro co-founded <strong>Dough Finance<\/strong>, a leveraged crypto trading platform that suffered a catastrophic <strong>$2.5 million hack in July 2024<\/strong> due to a critical code vulnerability.<\/p>\n\n\n\n<p>While the pair initially <strong>promised to reimburse affected users<\/strong>, they quickly moved on. Just two months after the hack, Folkman and Herro launched WLFI with <strong>Donald Trump\u2019s sons\u2014Donald Jr., Eric, and Barron Trump\u2014as partners<\/strong>. The lack of restitution to Dough Finance users has sparked outrage, especially as WLFI has seen rapid growth and fundraising success since its launch.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Lawsuit and Investor Losses Raise Legal Questions<\/h3>\n\n\n\n<p>Adding to the scrutiny, Folkman and Herro are currently <strong>facing a lawsuit<\/strong> related to their handling of the Dough Finance collapse. One investor, <strong>Jonathan Lopez<\/strong>, reportedly lost <strong>$1 million worth of crypto<\/strong> during the platform\u2019s exploit and is among those seeking restitution.<\/p>\n\n\n\n<p>Despite these serious allegations, <strong>Eric Trump<\/strong>, executive vice president of WLFI, issued a public defense of the two partners.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWe are proud of the entire team. They have overachieved our wildest goals and our current trajectory is nothing short of incredible,\u201d he said in a statement.<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">Justin Sun\u2019s Involvement Adds Fuel to the Fire<\/h3>\n\n\n\n<p>The controversy does not stop with Dough Finance. In <strong>December 2024<\/strong>, <strong>Tron founder Justin Sun<\/strong> joined WLFI as an advisor after investing <strong>$30 million<\/strong> into the project. Sun has long been a polarizing figure in the crypto industry and was previously under <strong>SEC investigation<\/strong> for alleged violations related to BitTorrent and Rainberry token sales.<\/p>\n\n\n\n<p>Curiously, the SEC <strong>dropped those investigations<\/strong> shortly after Sun\u2019s involvement in WLFI, prompting <strong>Democratic lawmakers<\/strong> to call for a deeper investigation into Trump\u2019s crypto-linked activities, alleging potential political interference and conflicts of interest.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Mounting Pressure on Trump\u2019s Crypto Empire<\/h3>\n\n\n\n<p>This new wave of scrutiny follows broader questions about the legitimacy and motives behind Trump\u2019s digital asset ventures. Critics suggest that projects like WLFI are being used as vehicles for personal enrichment rather than meaningful innovation in blockchain technology.<\/p>\n\n\n\n<p>As WLFI\u2019s profile continues to rise, <strong>regulatory pressure, legal action, and political backlash<\/strong> threaten to cast a long shadow over its future. With the <strong>2024 Dough Finance hack<\/strong> still unresolved and WLFI leadership doubling down on its support of controversial figures, the Trump crypto empire may soon face its most significant reckoning yet.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Donald Trump\u2019s foray into cryptocurrency is once again mired in controversy as a new report reveals that the key figures behind World Liberty Financial (WLFI) a Trump-backed crypto venture previously operated a failed and hacked crypto platform and failed to compensate its users. Reuters Report Uncovers Shady Past of WLFI Founders A Reuters investigation published&#8230;<\/p>\n","protected":false},"author":3,"featured_media":8785,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63,70],"tags":[65,206,87],"class_list":["post-8784","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-finance","tag-crypto","tag-hack","tag-wlfi"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Trump\u2019s WLFI Crypto Venture Under Fire After Founders Linked to Abandoned Hacked Exchange - Crypto News<\/title>\n<meta name=\"description\" content=\"Trump\u2019s WLFI crypto venture faces backlash after founders were linked to a hacked exchange, Dough Finance. 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