Decentralized Finance Project Addresses $60M Ethereum Transfer
World Liberty Financial (WLFI), a DeFi initiative linked to US President-elect Donald Trump, has recently come under scrutiny for its $60 million Ethereum transactions. Concerns arose amidst speculation of a sell-off, prompting the project to clarify the nature of these movements.
Routine Treasury Management
In a statement released on Jan. 15, WLFI explained that the transfers were part of routine treasury management practices, emphasizing that they were not indicative of token sales. The project stated, “To be clear, we are not selling tokens—we are simply reallocating assets for ordinary business purposes. These actions are intended to maintain a strong, secure, and efficient treasury.”
The blockchain analysis platform Lookonchain highlighted significant transactions by WLFI, including the conversion of 103 Wrapped Bitcoin (WBTC) into 3,075 Ethereum (ETH) and subsequent deposits into Coinbase. Additionally, WLFI acquired 17.62 WBTC at $96,491 per token using $1.7 million in Tether (USDT).
Recent Losses and Current Asset Holdings
Despite these transactions, Lookonchain reported that WLFI incurred a $5 million loss from its asset allocations. Arkham Intelligence data reveals that WLFI’s wallet currently holds approximately $16.7 million in various assets.
Future Plans for World Liberty Financial
This recent activity marks WLFI’s first major transaction since December, following the expansion of its DeFi token portfolio. The project is also gearing up to launch a custom Aave v3 instance after a community-backed proposal was approved.
While World Liberty Financial envisions itself as a DeFi hub for lending, borrowing, and investing in digital assets, it has maintained a low profile on social media, offering minimal updates. Despite facing fundraising challenges and adjusting its target from $300 million to $30 million, WLFI successfully reached its goal with support from crypto investor Justin Sun.
After experiencing an 81% surge in token profits following Trump’s election victory, WLFI’s total profits now amount to $80.2 million, according to Dune Analytics data.
In conclusion, while World Liberty Financial continues to navigate the complexities of the DeFi space amidst speculation and scrutiny, its commitment to maintaining a strong treasury and pursuing innovative opportunities remains unwavering.