- World Liberty Financial sold 5,471 ETH for $8.01 million, incurring a significant loss.
- The sale resulted in an estimated unrealized loss of $125 million.
- ETH has dropped 57% since early 2025.
- Bitcoin also down over 20% since February.
- WLFI aims to democratize crypto loans while maintaining US dollar dominance, backed by the Trump family.
- The sale raises questions about WLFI’s strategy.
World Liberty Financial ($WLFI), a decentralized finance (DeFi) protocol launched in September 2024, has been making headlines for its ambitious vision to democratize access to crypto loans while maintaining the dominance of the US dollar. Backed by Donald Trump, titled “Chief Crypto Advocate,” and his family—Barron Trump as “DeFi Visionary” and Eric Trump and Donald Trump Jr. as “Web3 Ambassadors”—WLFI has positioned itself as a high-profile player in the crypto space.
On April 9, 2025, reports emerged that WLFI sold 5,471 ETH for approximately $8.01 million, incurring a significant loss. This move, amid a broader crypto market slump, raises questions about their strategy and the future of DeFi investments.
The Sale: Numbers and Losses
According to multiple sources, including Crypto.news and MoneyCheck, WLFI sold 5,471 ETH at $1,465 per token, netting $8.01 million. This is a stark contrast to their previous purchases, where they acquired 67,498 ETH at an average price of $3,259, totaling around $210 million in investment. The sale highlights an estimated unrealized loss of $125 million on their ETH portfolio, a significant hit for any investor, especially one with such high-profile backing.
Market Context
The timing of the sale aligns with a broader market downturn. Ethereum ($ETH) has dropped nearly 57% since the beginning of 2025, trading below $1,500 for the first time since March 2023.
Bitcoin ($BTC) has also seen a decline of over 20% since early February, with other cryptocurrencies experiencing even larger drops.
Analysts, as reported by Blockonomi, suggest ETH could find support at $1,200, with potential recovery tied to expected Fed rate cuts in May. This context likely pressured WLFI’s decision, reflecting the volatile nature of crypto markets.
WLFI From Buying Spree to Selling Off
WLFI’s journey began with aggressive buying. By January 2025, their total crypto holdings crossed $388 million, including significant purchases of ETH, Wrapped Bitcoin ($WBTC), Tron ($TRX), Chainlink ($LINK), and Aave ($AAVE). They continued buying during market dips, with a $21.5 million acquisition in March 2025, including 4,468 ETH at $2,238. However, this recent sale marks a shift, raising questions about their strategy.
The project, marketed as a portal for traders to invest in cryptocurrency and use assets for borrowing and lending, has faced scrutiny. Critics, as noted in CoinLedger, suggest it may be an attempt by those close to Trump to profit off his brand, especially given regulatory challenges limiting participation to accredited U.S. investors, as mentioned in Bitcoin Consensus.
Despite this, WLFI raised nearly $590 million through token sales, with significant investments from figures like Justin Sun.
© Cryptopress. For informational purposes only, not offered as advice of any kind.
