The World Liberty Financial (WLFI) token suffered sharp price drops and large losses for investors as its case for the sale of 49% of its shares progresses.
Following its launch, WLFI plummeted over 14% in a matter of hours and accumulated a decline of nearly 40% by September of last year. At its lowest point, it was approximately 54% below its all-time high, resulting in both realized and unrealized losses among various types of participants.
According to market data, crypto traders who speculated directly on WLFI lost around $17 million. The impact was considerably greater for the retail segment, where reports estimated up to $500 million in broader losses associated with the token’s volatility and rapid price erosion.
The declines also affected holdings linked to the project’s ecosystem. Furthermore, by mid-January of this year, crypto positions associated with the Trump family had decreased by approximately $110 million, from an initial exposure of around $336 million, as the value of the token and other related assets adjusted downward.
Congressional investigation and National Security concerns
Meanwhile, World Liberty Financial executed large crypto sales that coincided with downward pressure on prices. These included the liquidation of over 170 BTC through Aave and the disposal of approximately $5 million in WBTC, moves that reinforced bearish sentiment and fueled concerns about liquidity and treasury management.
The situation became even more complicated on February 5 of this year, when Representative Ro Khanna (D-CA-17) initiated a formal investigation into a reported acquisition in early 2025 of approximately 49% of WLFI by Aryam Investment 1, an entity controlled by Sheikh Tahnoon bin Zayed Al Nahyan. The deal, reported to be worth around $500 million, raised concerns related to foreign influence, potential conflicts of interest, and national security implications.
As part of the inquiry, Khanna requested detailed documentation from WLFI CEO Zach Witkoff, including ownership records, payment traceability, and details about the project’s USD1 stablecoin. The letter also raised questions about an alleged $2 billion transaction linked to Binance and whether $187 million of the UAE deal flowed to businesses associated with Trump.
Looking ahead, the combination of massive sell-offs, high-profile liquidations, and active congressional scrutiny will influence decisions regarding trading platforms, banking relationships, and product roadmaps related to WLFI. Some analysts projected a further decline of approximately 27.8% by February 11, 2026, a key benchmark for risk teams and counterparties.
