DWF Labs, an Abu Dhabi-based cryptocurrency trading and investment firm, announced that it had acquired $25 million worth of digital tokens issued by World Liberty Financial (WLFI), a crypto initiative connected to U.S. President Donald Trump's family, as Reuters reported. This acquisition positions DWF Labs as one of the largest known holders of $WLFI tokens, governance tokens. Although these tokens cannot be traded, they grant holders the ability to vote on project protocol changes.
As reported by Reuters, DWF confirmed that the purchase was made through a strategic private transaction, although DWF Labs did not disclose the exact number of tokens acquired. The tokens, known as $WLFI, are governance tokens that cannot be traded but allow holders to vote on changes to the project's underlying code. The deal reflects its interest in participating in WLFI governance and backing projects to address real-world financial needs.
World Liberty, launched in 2024, seeks to enhance access to financial services through digital tokens, bypassing traditional intermediaries like banks in the decentralized finance (DeFi) ecosystem.
In March, World Liberty secured $550 million by selling WLFI tokens. During this fundraising, the Trump family reportedly took control of the venture, ensuring a significant share of the funds, aided by governance terms described by industry experts as favorable to insiders, as reported by Reuters.
According to an email to Reuters, Andrei Grachev, managing partner of DWF Labs, shared that the $WLFI tokens could be unlocked if the community votes for it. Grachev expressed confidence; he said he believed it would happen sooner or later.
According to his social media posts, Justin Sun, the Chinese-born crypto entrepreneur, is the largest known buyer of $WLFI tokens, having invested $75 million. He has since become an adviser to the World Liberty project.
Also, DWF Labs will provide liquidity for World Liberty's planned stablecoin, USD1, and is preparing to open a new office in New York. As reported by Reuters, the firm confirmed that it will not charge fees for its market-making services.
World Liberty announced that the Trump family took control of the business, replacing the original co-founders, Zak Folkman and Chase Herro. As reported by Reuters in March, the Trump family now holds a 60 per cent share of the venture and is entitled to 75 per cent of the net proceeds from token sales.
