Trump family and billions in crypto projects

The cryptocurrency industry continues to attract not only investors and technology companies, but also some of the most prominent political figures of the modern era. According to a large-scale Reuters investigation, the family of US President Donald Trump has earned at least 2.3 billion dollars from several cryptocurrency projects associated with its name. At the same time, according to the agency’s estimates, more than one million investors who put money into these assets and related companies collectively lost roughly the same amount.

The report covers four major projects: World Liberty Financial, the TRUMP memecoin, ALT5 Sigma (later renamed AI Financial Corp), and the mining company American Bitcoin. According to Reuters journalists, these projects formed the basis of the rapid growth of the Trump family’s crypto wealth and at the same time caused significant financial losses for a large number of retail investors.

Of particular interest is the participation model used by the Trump family in these initiatives. In most cases, the investigation found that there were no large direct investments or significant financing from family capital. Instead, a licensing model was used, where projects were granted the right to use the Trump brand, while family members publicly promoted new products to potential investors.

This approach allowed substantial financial gains with relatively low risk exposure. In practice, the family acted not so much as an investor but as a brand owner and marketing partner. Donald Trump himself described this type of business model years earlier as one of the most profitable forms of business. In 2016, he noted that licensing agreements are attractive because they require no capital investment and allow profits to be made from brand popularity.

The largest income, according to Reuters, came from World Liberty Financial. The project was launched in October 2024 under the slogan of democratizing the financial system and expanding access to digital assets. Initially, tokens were sold at 0.015 dollars, later rising to 0.05 dollars. According to the agency, around 75% of token sale revenues were directed to entities linked to the Trump family. As a result, total income from World Liberty Financial is estimated by Reuters at more than 1.4 billion dollars. However, the success story proved far less positive for most investors. After an initial surge, the token price sharply declined. At one point it reached about 0.46 dollars, but later fell to around 0.06 dollars. Total investor losses are estimated at approximately 674 million dollars.

Additional criticism arose after the decision to restrict token withdrawals for most investors until 2030. This move triggered dissatisfaction among parts of the market and raised concerns about investor protection. The situation was further complicated by legal proceedings involving well-known crypto entrepreneur Justin Sun, who was one of the project’s major investors.

Another widely discussed case was the launch of the TRUMP memecoin. The token entered the market on January 17, 2025, just days before Donald Trump’s inauguration. Massive interest from traders and supporters of the president led to a rapid surge in value, with the token price reaching nearly 75 dollars in the first day.

However, the subsequent trajectory followed a typical memecoin pattern. After the initial hype, the price collapsed sharply. According to Reuters calculations, the Trump family earned about 616 million dollars from the launch and promotion of the project. At the same time, investors lost more than 700 million dollars, and the token fell roughly 97% from its peak.

Another component of the family’s crypto ecosystem was ALT5 Sigma, a Nasdaq-listed company later renamed AI Financial Corp. According to the investigation, it raised about 750 million dollars through a share offering and then allocated around 717 million dollars to purchasing World Liberty Financial tokens.

Reuters claims that more than 500 million dollars of these funds ultimately became linked to Trump family-related entities through revenue distribution mechanisms. Meanwhile, investors faced a steep decline in the company’s share price. Stocks that once traded above 9 dollars later fell to around 75 cents, resulting in estimated losses of about 675 million dollars. The fourth project was the mining company American Bitcoin. The company entered the public market through a merger process and quickly attracted investor attention due to its close ties to the president’s family. Eric Trump became chief strategy officer and acquired roughly a 9% stake in the company.

According to Reuters, by the end of April 2025, the value of his holdings exceeded 70 million dollars. However, most investors also faced disappointment here. The company’s shares dropped from about 11 dollars to 1.15 dollars, and total shareholder losses exceeded 200 million dollars.

A particularly sensitive issue has been the discussion of potential conflicts of interest. Reuters reports that eight ethics experts described the situation as unprecedented in modern US politics. In their view, it is the first time a US president and his close circle have gained such significant financial benefits from an industry simultaneously regulated by federal authorities.

Critics argue that any regulatory decisions by the administration regarding cryptocurrency could directly affect the value of assets linked to the president’s family, creating a situation where political decisions may intersect with personal financial interests.

At the same time, most lawyers interviewed by Reuters note that owning crypto assets or participating in crypto businesses does not automatically constitute a legal violation. A direct link between policy decisions and financial gain must be proven for legal consequences to arise.

It is worth noting that the Reuters investigation is not the first major report on the Trump family’s crypto activity. Earlier, Bloomberg reported that within just a few weeks, the family’s wealth increased by about 1.3 billion dollars thanks to World Liberty Financial and American Bitcoin projects. The Financial Times also estimated the family’s crypto income at more than 1 billion dollars before taxes in a single year.

Notably, the scale of the family’s crypto business is already approaching that of traditional Trump Organization activities, including hotels, golf courses, and resort real estate. Just a few years ago, digital assets were seen as an experimental sector. Today, they are becoming one of the key revenue sources for major political and business elites.

The story of the Trump family’s crypto projects simultaneously highlights both the enormous potential of the cryptocurrency market and its high risks. While brand owners and project organizers generate multi-million and billion-dollar profits, a significant portion of retail investors continue to face sharp price fluctuations, high volatility, and capital losses. That is why experts once again emphasize that project popularity, a famous name, or political backing does not guarantee successful investments, and any exposure to high-risk crypto assets requires careful analysis and awareness of possible consequences.