"Bitcoin, it just seems like a scam… potentially a disaster waiting to happen….I don't like it because it's another currency competing against the dollar."
Donald Trump, June 2024
“Not all of you, but most of you, many of you, this is the kind of spirit that built America. This is the spirit that's going to help us make America great again. That's what we're doing. I stand before you today filled with respect and admiration for what the Bitcoin community has achieved. It's incredible…In just 15 years, Bitcoin has gone from merely an idea posted anonymously on an internet message board to being the ninth most valuable asset anywhere in the world. Can you believe that?... Bitcoin is not just a marvel of technology; It’s a miracle of cooperation and human achievement and a lot of relationships that are formed.”
Donald Trump in late July addressing a bitcoin conference in Nashville.
“If we don’t do it, China’s going to do it. China’s doing it anyways and if we don’t do it we’re not going to be the biggest and we have to be the biggest and the best.” Donald Trump, in September, touting the Trump family involvement in a new bitcoin to be released through a new company, World Liberty Financial
“Since cryptocurrencies eliminate the need for financial intermediaries to validate and facilitate transactions, criminals can exploit these characteristics to support illicit activity such as thefts, fraud, and money laundering.”
FBI Report
“This does present a strong possibility of a conflict of interest…Doing anything to promote crypto so it might benefit his sons’ future business is a problem.”
John P. Pelissero, director of government ethics at Santa Clara University’s Markkula Center for Applied Ethics.
What? A new cryptocurrency (via a dollar-linked “stablecoin”) from Donald Trump and his family? Wow, what’s not to like about this unique opportunity released through a new entity, World Liberty Financial (WLFI)? How often do you get an opportunity like this?! OK, you had your chance with Trump Media (which owns Trump’s Truth Social online platform). You don’t need to worry that Trump Media shares have fallen more than 80% since going public in March; Trump has learned from that effort. Look forward! Imagine the possibilities! I mean millions and millions of Americans trust Donald Trump, hang on his every word, and truly expect him to be reelected in November. Trump found “cryptocurrency Jesus” sometime in late June or mid-July… and he believes! And now, he validates bitcoins. Don’t let that mugshot above deter you either. He is, after all, a great businessman, right? The greatest! Just ask him.
If you like the golden sneakers, Trump NFTs and the customized Trump Bible, you’re gonna love the new Bitcoin from Trump and friends. According to World Liberty, the token associated with the new venture is the WLFI token, designed to facilitate various financial activities including borrowing, lending, and investing in crypto. Unlike many other tokens, WLFI is a governance-only asset, meaning it does not confer any financial rights to its holders. It will be available exclusively to accredited U.S. investors, in compliance with regulatory standards. That sounds legit. And then there’s Trump’s family expertise: “A notable aspect of the project is that Barron Trump, Donald Trump’s 18-year-old son, has been designated as the ‘DeFi visionary’ [decentralized, blockchain driven, finance] for World Liberty Financial. His role will focus on integrating DeFi solutions into the platform, reflecting a commitment to leveraging advanced blockchain technologies.” The Street.
We are told that the “Trumps themselves don’t own or operate any part of World Liberty Financial, according to Bloomberg. Instead the project appears to be run by Herro and Zachary Folkman, who used to teach classes on how to pick up women.” Bloomberg. Hmm, consistency! In spite of significant skepticism about the future and solidity of cryptocurrencies, including my own, Trump’s pledge, if elected, to turn the U.S. into the “crypto capital of the planet” and implement industry-friendly policies could have a new beneficiary: Trump and his family. One skeptic whom I respect is LA Times columnist, Michael Hiltzik; here are some of his observations on this new Trump adventure from the September 18th Los Angeles Times:
“On Sept. 9, the Federal Bureau of Investigation issued its annual report on cryptocurrency fraud. The FBI found that, in 2023, crypto-related fraud absolutely exploded, with $5.6 billion in losses suffered by Americans. That was a 45% increase over the year before… ‘Criminal actors exploit cryptocurrencies in each scheme category’ tracked by the agency’s Internet Crime Complaint Center,’ Assistant FBI Director Michael D. Nordwall wrote in the report. Crime was ‘pervasive’ in the field, he wrote, with the most common victims being investors; their losses accounted for nearly 71% of the total…
“Donald Trump and his family jumped whole hog into the crypto market… Via a livestream Monday [9/16] on the social media platform X and numerous X postings, Trump, his sons Donald Jr., Eric and Barron identified themselves or were identified as participants in the new venture… No one has suggested that there’s anything criminal in the venture as it’s been laid out. There’s no indication that Trump’s ongoing criminal cases have anything to do with cryptocurrency… ‘We’re embracing the future with crypto and leaving the slow and outdated big banks behind,’ Trump declared last week [mid-September] in a pre-livestream tweet on X.
“The idea that Trump — whose prior business ventures include Trump University, which was ‘ by New York authorities; six bankruptcies — five of his casinos and one bankruptcy of New York’s Plaza Hotel — and the failed enterprises Trump Shuttle, Trump Vodka, Trump Steaks and Trump Mortgage — would now do a cannonball dive into this sea of documented criminality seems so perfect it’s almost preordained. (Trump didn’t admit wrongdoing in the legal settlement of the Trump University case, but paid $25 million in compensation to former students and in legal penalties.)…
“According to the FBI, the U.S. is the world capital of crypto fraud. No other country comes close. Losses from complainants in the U.S. received by the FBI’s internet crime center in 2023 came to $4.8 billion; the second-ranked location of complainants was the Cayman Islands, with $195.7 million, followed by Mexico ($127 million) and Canada ($72.1 million)… The complaint roster showed that Californians lost the most in 2023, nearly $1.2 billion, followed by Texans ($412 million) and Floridians ($390 million). On a per capital basis, however, New Yorkers were the most seriously cheated, mulcted out of an average of $3,800 per 100,000 residents. Californians came in second, at $2,962.”
That Trump is willing to enter into crypto-world literally weeks before an election gives rise to all sort of speculation. Is he hedging his bets since his losing the election now seems to be more of a probability? Is he taking care of his family in case he is tried, convicted and incarcerated? Or is the allure of a new and potentially lucrative upside, despite the unsavory cast, an irresistible grift? Oh, Trump’s involvement in WLFI’s business at this level is probably a required public disclosure.
I’m Peter Dekom, and if you just draw up a list of all the lies Trump has uttered, threats he has made, crimes he is accused of (and convicted), the circle of fraud that has hovered over many of his businesses and his stated desire to be an autocrat who will turn the DOJ to prosecute his political foes, why exactly does any patriotic American believe Trump should once again be President of the United States?
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