In a move that has caught the attention of both the crypto and political worlds, former U.S. President Donald Trump and his sons have been quietly working on a new cryptocurrency project—World Liberty Financial. While public details have been sparse, CoinDesk has uncovered key information that links the venture to a $2M DeFi Scandal. Decentralized finance (DeFi) hack and a controversial figure from the world of pick-up artistry.
The Emergence of World Liberty Financial
World Liberty Financial is shaping up to be a significant player in the DeFi space, although it has already been mired in controversy. The project, teased by Trump and his sons for weeks, is being billed as a decentralized borrowing and lending service, similar to Dough Finance—a blockchain app that suffered a $2 million hack in July 2024. Intriguingly, four of the team members listed in World Liberty Financial’s white paper were involved in the development of Dough Finance, raising questions about the new project’s security and legitimacy.
The white paper, which CoinDesk managed to obtain excerpts from, reveals that World Liberty Financial will feature a governance token called WLFI. This non-transferable token will allow users to participate in platform governance, such as voting on new DeFi lending markets or integrating additional blockchains. However, the token’s transfer restrictions could limit its appeal to speculators, making it difficult to trade on the open market.
The Controversial Connections
The team behind World Liberty Financial reads like a who’s who of controversial figures in the crypto and tech worlds. Notably, the white paper lists Zachary Folkman and Chase Herro as key members. Folkman, who is registered as the head of operations, and Herro, the data and strategies lead, both played significant roles in the development of Dough Finance. According to reports, Folkman also founded Date Hotter Girls LLC, a company offering seminars on how to pick up women—further adding to the project’s contentious nature.
Another critical figure in the development of World Liberty Financial is Octavian Lojnita, who is listed as the smart contracts lead. Lojnita was also involved with Dough Finance, further linking the two projects. Additionally, a pseudonymous front-end developer known as Boga, who was an author of Dough Finance’s source code, is also on the team.
Folkman and Herro have a history of working together on various projects, including Subify, a platform positioned as a censorship-free alternative to Patreon and OnlyFans. The two have also been involved in “mastermind groups,” private networking clubs with high entry fees, and have sold online e-commerce courses. Herro’s past includes stints in prison for drug-related charges, which he has openly discussed on popular platforms like Logan Paul’s podcast “Impaulsive.”
World Liberty Financial’s DeFi Ambitions
Despite the controversy surrounding its team members, World Liberty Financial aims to make a significant impact on the DeFi landscape. The white paper outlines plans for a “credit account system” built on the Ethereum blockchain and the Aave DeFi platform, designed to facilitate decentralized borrowing and lending. The platform will also feature an intuitive interface, allowing users to access WLFI as a “smart account” or brokerage.
However, the project’s security remains a concern, especially given its connection to Dough Finance and the significant hack that drained $2 million from the platform. A review of the World Liberty Financial codebase on GitHub (since deleted) suggests that the project may have initially used code lifted directly from Dough Finance. While there’s no current evidence that vulnerabilities from the Dough Finance hack are present in World Liberty Financial’s code, the link between the two is troubling for potential investors.
Donald Trump’s Foray into Cryptocurrency
Donald Trump’s involvement in World Liberty Financial marks a significant shift in his stance on digital assets. During his presidency, Trump was openly skeptical of cryptocurrencies, famously declaring that Bitcoin was “based on thin air.” Now, with a campaign promise to turn the United States into the “crypto capital of the planet,” Trump seems to be courting the crypto community, which has become a major financial player in the 2024 election cycle.
Trump’s foray into the crypto world follows his previous ventures into digital assets, including the sale of multiple waves of Trump-themed non-fungible tokens (NFTs). These NFTs, which offered buyers a chance to win dinner with Trump or similar rewards, were a significant success, further cementing his appeal to the crypto community.
Cryptocurrency companies have become substantial contributors to political campaigns, with $119 million spent in the 2024 election cycle alone. Major players like Coinbase and Ripple have emerged as top corporate spenders, with Coinbase securing the No. 1 spot. Trump’s pivot toward cryptocurrency could be seen as a strategic move to tap into this growing source of campaign funding.
The Future of World Liberty Financial
As World Liberty Financial moves forward, it remains to be seen how the project will fare in the competitive and rapidly evolving DeFi space. The involvement of Donald Trump and his sons undoubtedly brings a level of visibility and scrutiny that few other projects enjoy. However, the controversies surrounding the team members and the project’s connection to the Dough Finance hack could pose significant challenges.
For those interested in exploring World Liberty Financial, it’s essential to approach with caution. The project’s success will depend on its ability to overcome the shadow of past failures and deliver on its promises of a secure, user-friendly DeFi platform.
As the project develops, it will be crucial to keep an eye on how it addresses security concerns and whether it can carve out a niche in the crowded DeFi marketplace. World Liberty Financial could either become a significant player in the space or fade into obscurity—only time will tell.
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