DWF Labs Invests $25 Million in Trump-Linked WLFI Amid Scrutiny Over Past Controversies
DWF Labs Bets on WLFI With $25 Million Investment and U.S. Expansion Plans
DWF Labs, a prominent player in the Web3 and digital asset investment space, has announced a $25 million investment in World Liberty Financial (WLFI), a crypto venture reportedly linked to the Trump family. The firm also revealed plans to establish a physical presence in New York City—marking a significant step toward deepening its involvement in the U.S. crypto market.
The move signals DWF’s confidence in America’s role as a catalyst for global crypto adoption, even as regulatory uncertainty and political tensions linger.
“We believe the U.S. is poised to lead the next wave of institutional crypto innovation,” said DWF Labs Managing Partner Andrei Grachev. “Our partnership with WLFI, alongside the launch of USD1 and upcoming DeFi solutions, reflects our broader mission to improve access to financial services worldwide.”
WLFI has recently made headlines for its strategic ambitions, including talks with Binance to launch a stablecoin. The result was the debut of USD1, a new entrant in the increasingly competitive stablecoin market. DWF’s capital injection and New York expansion could provide WLFI with much-needed liquidity and credibility as it seeks to scale.
An Opportunity for U.S. Crypto Liquidity—But Not Without Risks
While the partnership could stimulate the U.S. crypto ecosystem—unlocking new liquidity channels and fostering innovation among startups—DWF Labs' controversial past is resurfacing as a point of concern.
The firm has faced prior allegations of wash trading and market manipulation, with reports suggesting Binance halted an internal investigation due to conflicting financial interests. Additionally, a partner was removed last year over serious misconduct allegations, further clouding the firm’s reputation.
Adding to the controversy, a recent report alleged that a significant portion of WLFI’s revenues funnel directly to the Trump family. Investors reportedly have limited ability to trade WLFI tokens, and the governance model remains unclear—raising transparency concerns within the broader crypto community.
This isn't the first time WLFI has been linked to eyebrow-raising investments. Following the 2024 U.S. presidential election, Justin Sun, founder of Tron, reportedly invested $30 million into WLFI. According to reports, the Trump family received a large share of these funds. The SEC later settled a fraud case with Sun earlier this year.
These developments have led critics to question whether WLFI could become a vehicle for political financing disguised as blockchain innovation. While no legal wrongdoing has been proven in connection to the DWF deal, the timing and context have prompted scrutiny.
What Comes Next?
Although DWF Labs has yet to respond to media inquiries regarding past allegations, their investment strategy in the U.S. is clear: plant roots, build relationships with regulators, and expand influence in one of the world's largest crypto markets.
Still, questions remain about the long-term intentions behind their WLFI investment—and whether transparency, governance, and compliance will be prioritized going forward.