14 October 2024

Trump Brothers Launch Controversial Cryptocurrency Startup Amid Security Concerns

Donald Trump’s sons, Donald Jr. and Eric Trump, have launched a cryptocurrency startup, World Liberty Financial, raising concerns among crypto allies due to security issues and past breaches.

Trump Brothers Launch Controversial Cryptocurrency Startup Amid Security Concerns

Donald Trump’s sons, Donald Jr. and Eric Trump, have recently launched a cryptocurrency startup called World Liberty Financial, which has raised eyebrows among some of their father’s staunch supporters in the crypto community.

What You Need to Know

In recent weeks, the Trump siblings have been actively promoting their new venture, World Liberty Financial. However, reports from Politico indicate that the startup is already facing significant challenges, including hacking incidents involving family members and concerns regarding its ties to a blockchain company that previously suffered a $2 million loss due to security breaches.

Nic Carter, a partner at Castle Island Ventures and a supporter of Trump, expressed his concerns, stating, "This is a huge mistake. It seems like Trump’s inner circle is just cashing in on his recent endorsement of crypto in an unsophisticated manner, and frankly, it appears as though they’re squandering a lot of the goodwill that’s been established with the industry so far."

Earlier this week, social media accounts belonging to Trump’s daughter-in-law and daughter were hacked and used to promote a crypto token allegedly associated with the Trump brothers’ startup. This incident prompted the company to issue a warning to the public, advising them not to click on any suspicious links or purchase tokens shared from these compromised profiles.

Company Response

Zak Folkman, a representative for World Liberty, stated that they are committed to "building a world-class decentralized finance platform with the absolute best of the best in the industry." He also confirmed that unauthorized posts and a fake Telegram channel have been reported to the respective platforms. Folkman clarified that Lara Trump and Tiffany Trump are not involved in the project.

Despite the challenges, there are lingering concerns about the team behind World Liberty Financial. The startup has circulated a white paper outlining a borrowing and lending service similar to Dough Finance, a blockchain application that was hacked for $2 million in July. Notably, the four founders of Dough Finance are listed as team members of World Liberty Financial.

Political Implications

In light of these developments, Donald Trump has reiterated his ambition to make the United States the “crypto capital of the planet” if he secures another presidential term in November. This has led to speculation that his crypto policies could disproportionately benefit his family’s interests.

Conclusion

The Trump family's foray into the cryptocurrency sector has been met with skepticism, particularly due to recent hacking incidents and the questionable connections to a compromised blockchain company. This venture could have significant implications for the reputation and acceptance of cryptocurrency within the political landscape, especially if perceived as a means for the Trump family to capitalize on Donald Trump's potential return to the presidency.

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This article was partially produced with the assistance of Benzinga Neuro and was reviewed and published by Benzinga editors.

Source: Benzinga