Former President Donald Trump has launched a new cryptocurrency venture just weeks before the upcoming election. The venture, named World Liberty Financial, was unveiled in a virtual address from Trump's Mar-a-Lago estate. The announcement adds another layer of complexity to Trump's third bid for the White House, raising concerns over potential conflicts of interest should he win the presidency.
Details about World Liberty Financial remain sparse, but Trump's son, Donald Trump Jr., indicated that the new company aims to provide financial opportunities to individuals who struggle to secure funding from traditional banks. "It's very young and very growing," Trump said during the event, reflecting his optimism about the burgeoning cryptocurrency industry.
The timing of this new business endeavor is notable, coming just 50 days before the election. No major party nominee has previously leveraged their candidacy for personal profit in such a direct manner. Trump has already generated significant wealth through various ventures linked to his political career, including the sale of digital trading cards and other merchandise that appeals to his base.
However, the launch of World Liberty Financial introduces a new set of ethical concerns. Trump has been vocal about his support for digital currencies on the campaign trail, promising policies that could directly benefit the cryptocurrency sector. Now, with his new company entering the fray, questions arise about the potential conflicts of interest if Trump were to enact favorable policies from the Oval Office that could boost his own financial interests.
"This is definitely new territory," said Jordan Libowitz from Citizens for Responsibility and Ethics in Washington. "You generally see presidential candidates try to separate themselves from their conflicts of interest instead of bringing new ones into the fold. The fact that Trump is launching a new company while also talking up policies that would potentially benefit that company is unprecedented."
Legal experts and financial regulators are also raising alarms. Yesha Yadav, a professor of law at Vanderbilt University who specializes in financial regulation and cryptocurrencies, pointed out the potential risks associated with the venture. "Given the financial risks of a project that may attract investors purely based on the celebrity of the former president and his family, this is a reality that needs to be taken seriously," Yadav said. She emphasized the dangers of hackers and other malicious actors targeting the venture due to its high-profile nature.
The lack of transparency surrounding World Liberty Financial's structure and operations only adds to the unease. The Trump campaign has not provided details on how the former president plans to manage the potential conflicts of interest or how the business will operate if he wins the election. Steven Cheung, a spokesperson for Trump's campaign, dismissed concerns, stating that Trump remains focused on his campaign and has "out-worked" his opponent, Vice President Kamala Harris.
Trump's history of mixing business with politics is well-documented. Since entering the political arena, he has launched several ventures that have proven lucrative, such as licensing deals for digital NFTs and other merchandise. In 2023, Trump earned approximately $7.2 million through a deal with NFT INT, LLC, which sells digital trading cards featuring the former president. His ventures have often blurred the lines between his political messaging and business interests, with advertisements for his products mimicking campaign videos.
The financial implications of Trump's new cryptocurrency venture are significant. Trump Media & Technology Group, the parent company of his Truth Social platform, represents a substantial portion of his wealth. Trump's statements can cause fluctuations in the stock value of his companies, as demonstrated by a recent 25% spike in Trump Media's stock following comments he made about not selling his shares.
World Liberty Financial, however, presents perhaps the most direct potential conflict of interest yet. The cryptocurrency industry, still in its nascent stages, has faced scrutiny from federal regulators as it seeks legitimacy. Trump has already signaled his intent to fire SEC Chair Gary Gensler and to create a "strategic national bitcoin stockpile," further intertwining his political ambitions with his business interests.
Critics argue that Trump's new venture is not just a business opportunity but also a potential ethical minefield. Gareth Rhodes, an attorney and former financial regulator, voiced concerns about the motivations behind World Liberty Financial. "Is this going to be a legitimate effort to innovate in the financial sector, or is it more about capitalizing on Trump's political prospects?" Rhodes asked.
Moreover, the venture faces immediate challenges. Hackers have already targeted fake versions of World Liberty Financial, taking advantage of the hype to scam potential investors. The official X account for World Liberty Financial has issued warnings to the public, cautioning them against scams and fake tokens.
