Trump-Linked Crypto Firm Sells $5M in Bitcoin as Markets Reel

A crypto project backed by the Trump family has sold millions in Wrapped Bitcoin, just as the market experienced a sharp downturn.

Key Takeaways

• World Liberty Financial sold 73 Wrapped Bitcoin (WBTC) worth $5.04 million.
• The sale was executed at around $69,000 per token amid an 8 percent drop in Bitcoin prices.
• Transactions were routed through DeFi platforms CoW Protocol and Aave.
• Political scrutiny is mounting as WLFI faces a U.S. House probe over a $500 million UAE deal.

What Happened?

World Liberty Financial (WLFI), a crypto project linked to the family of former U.S. President Donald Trump, offloaded 73 units of Wrapped Bitcoin (WBTC) as markets slumped. The transaction, totaling $5.04 million, came as Bitcoin tumbled below $70,000, marking its steepest single-day drop since November 2024.

The move has caught the crypto industry’s attention, not only for its timing but also for its political and market implications.

WLFI Sells $5M in WBTC as Bitcoin Falls Below $70K

On-chain data analyzed by Lookonchain revealed that WLFI sold the tokens at an average price of around $69,000 per WBTC. This sale occurred just as Bitcoin briefly dropped to $66,000 before stabilizing around $67,000.

The sales took place during a broader market correction across digital assets and equities. With risk sentiment declining, even medium-sized transactions like this have the potential to further drive volatility.

Use of DeFi Protocols to Limit Slippage

Rather than making a direct sale, WLFI executed the trades through decentralized finance protocols. Blockchain records show the tokens were routed through CoW Protocol and Aave, converting WBTC into stablecoins via several smaller swaps.

This multi-step transaction strategy is often used to limit slippage, especially in periods of market stress. Using DeFi platforms in this way allowed WLFI to reduce the impact of its sale on market pricing while maintaining liquidity.

Political Scrutiny Adds Heat to the Timing

The timing of this high-value transaction is raising eyebrows, especially as WLFI is currently under investigation by the U.S. House of Representatives. The probe relates to a reported $500 million agreement with the United Arab Emirates.

Although there is no direct evidence linking the sale to the ongoing investigation, the overlap in timing has led to increased monitoring of WLFI’s blockchain activities. Political ties, especially to high-profile figures like Donald Trump, have made WLFI’s crypto operations a point of concern among regulators and investors alike.

Bitcoin and Broader Markets Under Pressure

The WLFI sale added to an already fragile environment. Bitcoin’s decline below the $70,000 psychological support level sent ripples through altcoins, many of which posted double-digit losses during the same window.

Image Credit – CoinGecko.com

This downturn was not limited to crypto, as the stock market also fell, suggesting a broader risk-off sentiment in global markets. Thin liquidity across exchanges made digital assets particularly vulnerable to sudden sell pressure.

CoinLaw’s Takeaway

I found this sale incredibly telling. In my experience, when politically exposed crypto entities make sizable on-chain moves during turbulent times, it’s often more than just a portfolio decision. This wasn’t just a $5 million Bitcoin sale. It was a loud signal to traders, regulators, and the media that WLFI is willing to act even when market sentiment is fragile.

What really stood out was the use of DeFi tools like CoW Protocol and Aave. That suggests the team behind WLFI is savvy and strategic, aiming to manage risk and optics. But let’s not forget the context: this comes as WLFI faces a serious congressional investigation. Whether or not it was a coincidence, the move puts WLFI back under the spotlight. If you’re watching crypto markets closely, this is one wallet you’ll want to keep tabs on.

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