In 2025, economist Justin Wolfers raised significant concerns regarding potential federal bailouts linked to cryptocurrency ventures promoted by the Trump family. During a recent interview with MSNBC, Wolfers highlighted the Trump family’s reported $5 billion windfall from the launch of the World Liberty Financial (WLFI) token. He emphasized that a substantial portion of former President Donald Trump’s wealth now stems from the cryptocurrency sector, which includes the Official Trump TRUMP/USD and Official Melania MELANIA/USD coins.
“They’re trying to sell this now to working- and middle-class Americans as an investment where it’s no such thing,” Wolfers warned, suggesting that the current situation may resemble a financial bubble. He elaborated, stating, “You would think normally you would just let investors who took such outrageous gambles take the loss. But the oldest trick in their playbook is to privatize the gains and socialize the losses.” Furthermore, Wolfers predicted that Trump would orchestrate a “pure grifter bailout” that would benefit only a select few American families while placing the financial burden on taxpayers.
Wolfers also called for Republican congressional representatives to clarify their positions on this issue before external pressures could influence their responses in the future. This sentiment echoes growing concerns among political figures regarding the ethical implications of the Trump family’s financial activities.
Adding to the discourse, former Secretary of Transportation Pete Buttigieg criticized the Trump family’s $5 billion paper gains, labeling the situation as “corruption” that should not be normalized. He stated, “This level of corruption is not normal or acceptable. Even if we are exhausted by each report of it going further and further, we can never grow numb to it.” The remarks from both Wolfers and Buttigieg underscore the contentious nature of the Trump family’s financial dealings in the cryptocurrency market.
Amidst this controversy, the Trump family’s financial gains from the WLFI token have attracted significant scrutiny. Senator Elizabeth Warren (D-Mass.) characterized these activities as “plain and simple” corruption. Notably, Justin Sun, a controversial cryptocurrency mogul with a history of legal challenges from the SEC, is one of the major investors in WLFI, holding approximately 3 billion tokens valued at over $540 million, as reported by Arkham Intelligence.
As the WLFI token gained media attention, its market performance has raised additional red flags. As of the latest reports, the token’s value has experienced a significant decline, trading at $0.1804, which represents a drop of 20.38% in just 24 hours and over 55% from its peak, according to data from Benzinga Pro.
The White House has not yet responded to inquiries from Benzinga regarding these issues. The implications of these financial maneuvers continue to be a hot topic, drawing criticism and concern from various political and economic commentators. As the situation unfolds, it remains critical for stakeholders and the public to remain vigilant about the potential consequences of such financial dealings on the broader economy.
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