Two cryptocurrencies linked to the Trump family have suffered double-digit losses. Trump (TRUMP) and World Liberty Financial (WLFI) fell 14.6% and 10.8% respectively, underperforming a broader market decline. The drop follows a Democrat-led House investigation into a $500 million investment deal between World Liberty Financial and UAE royal Sheikh Tahnoon bin Zayed Al Nahyan made prior to Donald Trump’s inauguration. The probe seeks information on how such financial interests may influence U.S. policy.
Official Trump (TRUMP) and World Liberty Financial (WLFI) have fallen 14.6% and 10.8% in the past 24 hours. TRUMP is now priced at $3.41, a 95% collapse from its record high of $37.43 in January of last year.
WLFI has sunk to $0.111, a 67% decline from its all-time high last September. The wider cryptocurrency market’s total capitalization dropped 2.8% in the same period.
The tokens’ decline follows the launch of an investigation by Representative Ro Khanna (D-CA). The probe focuses on “how conflicts of interest may be influencing U.S. government policies” in sectors where the U.S. competes with China.
Khanna has written a letter to World Liberty Financial requesting information on its $500 million deal with Sheikh Tahnoon. A report stated this investment preceded a Trump administration deal to send advanced AI chips to the UAE.
The investigation is also seeking info regarding the firm’s “facilitation” of a $2 billion investment by Abu Dhabi-based MGX in Binance. Senator Chris Murphy (D-CT) suggested the undisclosed investment amounted to “open corruption.”
World Liberty Financial counts Donald Trump and Steve Witkoff as “co-founders emeritus.” The company asserts that neither Trump nor his family members hold any role as “director, officer or employee.”
According to eToro analyst Simon Peters, risk-off sentiment is weighing heavily on the crypto market. He stated, “Recent geopolitical tensions, macroeconomic uncertainty, disappointing earnings forecasts and the threat of quantum computing is causing institutional investors to rethink tech valuations and their exposure to crypto.”
Peters noted that spot Bitcoin ETFs have seen some of their biggest ever days of outflows recently. He added that Bitcoin is nearing its 200-week moving average, which has historically acted as strong support.
