Trump-Linked Firm Dumps $11.75M in Bitcoin Amid Market Drop

CryptoFrontNews
BTC-1,65%
WBTC-1,83%
WLFI-5,41%
  • World Liberty Finance sold 173 WBTC for USDC as Bitcoin fell, likely to cut risk and protect value during volatility.

  • The Bitcoin sales happened in quick bursts, showing a defensive move toward stablecoins rather than panic selling.

  • The firm is also under U.S. scrutiny over a $500M UAE-linked deal, raising concerns about politics and foreign influence.

World Liberty Finance, a crypto project tied to the Trump family, sold 173 Wrapped Bitcoin (WBTC) for approximately $11.75 million in USDC on February 5. The sales happened during heightened Bitcoin price swings, suggesting the firm reduced exposure to market risk.

According to the data, there have been major transactions where 73 WBTC was sold for $5.04 million, while 100 WBTC was sold for $6.71 million. However, the transactions were made when Bitcoin’s price was going down—showcasing the firm’s strategy for sticking with stablecoins.

These WBTC offloads came in two separate bursts, first at 13:40 UTC and 13:41 UTC, followed by a larger sale at 17:25 UTC. Hence, World Liberty Finance managed to secure a significant portion of capital in USDC, effectively shielding itself from further volatility.

Analysts note that such moves are typical when entities aim to preserve value during sharp market drops. Moreover, timing these trades during a price decline can indicate risk mitigation rather than speculative selling.

$500M UAE Deal Under Congressional Scrutiny

Besides crypto sales, World Liberty Finance faces a U.S. congressional investigation over a $500 million deal linked to Donald Trump’s return to the White House. House Democrats, led by Rep. Ro Khanna, are probing the firm after reports revealed a UAE-linked entity acquired a major stake just days before Trump’s second inauguration.

The Jan. 16, 2025 agreement gave Aryam Investment 1, a firm registered in Delaware and Abu Dhabi, a 49% stake in WLFI. Aryam paid $250 million upfront, with $250 million due by July 2025.

Eric Trump signed the deal on behalf of WLFI, directing $187 million to Trump-affiliated entities, $31 million to WLFI co-founders, and $31 million to Zak Folkman and Chase Herro.

Importantly, the UAE investor did not receive governance token rights, limiting exposure to equity only. Consequently, lawmakers question potential conflicts of interest and foreign influence, considering Sheikh Tahnoon bin Zayed Al Nahyan backed Aryam Investment 1.

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