Trump-linked WLFI token drops more than 80% as Sun dispute deepens

World Liberty Financial, the Trump family’s crypto venture, is facing renewed scrutiny after New York magazine detailed early concerns from venture capitalist Nic Carter and highlighted features of the WLFI token that have limited trading and raised questions about holder protections. Carter said he declined an advisory role in 2024 after concluding Steve Witkoff appeared unfamiliar with crypto and DeFi (decentralized finance, blockchain-based financial services), reinforcing his view that the project lacked a real business and was simply issuing a token. He said Witkoff also stressed that the launch needed to happen before the election so Trump would still be a private citizen. World Liberty disputed Carter’s account and said it never offered him the job. The project’s own Gold Paper says WLFI’s sole utility is governance and that holders have no right to returns or dividends. WLFI trades near $0.055 versus a record $0.3313 on Sept. 1, 2025, its first day of open trading, when the price fell 40% before the session ended. Only 20% of each investor’s tokens were released for trading that day, and just 31.8% of the supply currently trades. Under an April plan, the rest would unlock from 2028, while holders who vote against the proposal would remain locked. The company also added a contract function eight days before trading began that allows it to freeze any wallet. Justin Sun was identified as the largest early backer. He sued World Liberty Financial in California for fraud, while the company countersued for defamation in Miami; both cases remain at an early stage. Even as the token declined, the venture has remained lucrative for the Trump family, with reporting indicating that relatively little of that upside reached ordinary holders.