By David Yaffe-Bellany, Sharon LaFraniere and Matthew Goldstein
One day after an apparent assassination attempt on former President Donald Trump, he went live on Monday to advocate for his latest business project: cryptocurrencies.
“Crypto is something we need to pursue,” Trump mentioned on the platform X. “Whether we are fond of it or not, I have to get involved.”
Accompanying him were associates, including a family acquaintance; Trump’s eldest sons, Donald Trump Jr. and Eric Trump; along with two lesser-known crypto entrepreneurs lacking experience in managing a prominent business. Together, they were launching Trump’s crypto initiative, World Liberty Financial, which has already raised issues regarding the former president’s potential conflicts of interest and alarmed some of his staunchest industry supporters.
Trump has been promoting this initiative since August, but its exact intentions are not yet clear. No official launch timeline has been announced. During the livestream, he did not elaborate on the venture, leaving specifics to entrepreneurs Chase Herro and Zachary Folkman. Herro has labeled himself as “the dirtbag of the internet,” while Folkman previously instructed classes on how to charm women.
It is quite unconventional for a presidential candidate to pursue a new business initiative just weeks ahead of Election Day, and it is even more unusual for one to actively promote a venture that is designed to financially benefit himself and his family. Nevertheless, throughout his time in politics, Trump has participated in business activities that ethics experts have deemed controversial. He holds the majority stake in Trump Media & Technology Group, the public parent company of his social media network, Truth Social, which constitutes roughly $2 billion of his personal fortune.
Danielle Brian, executive director of the Project on Government Oversight, a nonpartisan oversight organization, stated that if Trump were to be elected in November, his connection to the crypto venture would present significant conflicts of interest. The Securities and Exchange Commission has been vigilant about the sector, contending that almost all cryptocurrencies are unregistered securities that should be regulated like stocks on Wall Street.
Trump “would have the ability to influence regulatory bodies to favor businesses he is affiliated with,” Brian remarked. Ethics experts have noted that his ownership of the social media company brings up similar concerns.
Representatives for the Trump Organization and World Liberty Financial have not responded to inquiries for comments.
Historically, Trump was skeptical of cryptocurrencies, having condemned bitcoin as a “scam.” However, on the campaign trail, he has shifted into a vocal supporter, participating in a notable industry conference and receiving contributions from crypto business leaders.
Preparations for World Liberty Financial started nine months ago, as shared by Steve Witkoff, a family friend involved in the initiative, who is a real estate mogul aiding in its development. During the livestream, Witkoff mentioned he connected Trump’s sons with Herro and Folkman, who have been managing the initiative.
By July, AMG Software Solutions, a Puerto Rico-based firm, had filed for a trademark for the new platform. The following month, Trump, along with Eric and Donald Trump Jr., began sharing about it on X.
During the livestream on Monday, Trump and his sons proclaimed that crypto would revolutionize the financial landscape, without clarifying what their business aims to achieve. However, privately, some individuals involved with World Liberty Financial have marketed it as a borrowing and lending platform, according to three sources familiar with the project. A white paper for the initiative, reviewed by The New York Times, indicated that it would introduce a new cryptocurrency named $WLFI that would be available to the public.
On its official X and Telegram profiles, World Liberty Financial claims that the project’s goal is to foster “mass adoption of stablecoins,” a category of cryptocurrency aimed at maintaining a fixed value of $1. One individual briefed on the project described it as akin to an existing platform known as Instadapp, which facilitates users in managing their investments across diverse crypto platforms.
Various members of the Trump family hold positions in the enterprise, according to a team member list contained in the white paper. Donald Trump is titled as “chief crypto advocate.” His 18-year-old son, Barron Trump, is designated as the project’s “DeFi visionary,” referring to decentralized finance in the crypto realm. Both Eric Trump and Donald Trump Jr. are cited as “web3 ambassadors.”
A disclaimer included at the conclusion of the document indicated that the platform is not owned or managed by Donald Trump, the Trump Organization, or any of his family, although relatives may receive compensation. (The white paper was previously reported by the crypto news source CoinDesk.)
The key players in the initiative are Herro and Folkman. During the livestream, Herro, who occasionally spells his surname as Hero, expressed that his mission was to provide “the everyday American” with opportunities for crypto investments.
“This country has treated me well, and crypto has been incredibly beneficial for me,” Herro stated.
Herro remains a relatively obscure figure in the crypto realm. He has mentioned in his younger days that he grappled with drug offenses and was incarcerated, but later changed his trajectory and became wealthy. In 2022, he participated in a crypto seminar led by Jordan Belfort, who was the inspiration behind the 2013 film “The Wolf of Wall Street.” At the seminar, Herro referred to stablecoins as “the most significant innovation since sliced bread,” claiming that his favorite coin was “vivacious and nearly a Ponzi scheme.”
Over the years, Herro has collaborated closely with Folkman, who established a company called Date Hotter Girls, offering seminars focused on “attracting, dating, and retaining beautiful and high-quality women.”
