Amidst the intense volatility in the cryptocurrency market, DeFi protocol World Liberty Financial (WLFI), backed by the family of U.S. President Donald Trump, has unexpectedly announced that it was forced to sell Bitcoin to repay debts due to liquidation pressures from lending platforms, drawing significant market attention.
According to on-chain data platform Arkham Intelligence, the official wallet of World Liberty Financial sold over 170 Bitcoins on Wednesday at an approximate price of $67,000 each, cashing out about $11 million. The funds were immediately transferred to leading lending protocol Aave to repay loans and avoid liquidation.
While being forced to sell assets to cover debts, WLFI token prices also continued to come under pressure. CoinGecko data shows that WLFI tokens dropped more than 15% today, performing even worse than Bitcoin and Ethereum, which declined about 10%.
In fact, since the token was officially launched in September last year, WLFI’s price has been on a downward trend. The initial price on launch day was around $0.23, with a market cap of $6.6 billion; but currently, the price has fallen to approximately $0.109, a decline of over 65%.
In addition to financial pressures, World Liberty Financial remains embroiled in political and regulatory controversies. Political opponents of Trump recently called for an investigation into the DeFi protocol.
U.S. Congressman Ro Khanna publicly stated on Wednesday that an investigation has been launched into a $500 million equity investment transaction by a UAE entity in World Liberty Financial, and he has called for clarification of the source of funds and related interests.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
CFTC clarifies cryptocurrency margin rules: BTC and ETH capital deduction rate of 20%, permitting investment in the derivatives market
The U.S. Commodity Futures Trading Commission (CFTC) recently released an FAQ clarifying the rules for using cryptocurrencies as margin in derivatives markets, specifically setting capital deduction rates of 20% for Bitcoin and Ethereum and 2% for stablecoins. The pilot program will be limited to three coin types in the first three months, after which it will expand to additional cryptocurrencies and relax reporting requirements. Qualifying crypto assets may be used as margin, marking a gradual acceptance of blockchain assets within the U.S. financial system.
動區BlockTempo1h ago
Brazil Plans to Postpone Cryptocurrency Tax Policy Decision Until After Presidential Election in October This Year
Gate News reported that on March 22, Brazil's Finance Minister revealed that the country will delay its decision on cryptocurrency tax policy until after the presidential election this October. Brazil will hold its presidential election in October 2026, and the government has decided to make a final decision on cryptocurrency tax policy after the election concludes.
GateNews1h ago
US SEC and CFTC Jointly Release Interpretive Guidance on Crypto Assets, Expected to Take Effect on March 23
The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly issued interpretive guidance on crypto assets that will take effect on March 23, replacing the framework released in 2019. This guidance provides clear regulatory direction to market participants and promotes compliant development of the crypto industry.
GateNews2h ago
US House Financial Services Committee will hold a tokenization hearing next Wednesday
Gate News Announcement: On March 22, according to crypto journalist Eleanor Terrett's post on X platform, the U.S. House Committee on Financial Services plans to hold a hearing on tokenization next Wednesday at 10 a.m. Eastern Time. Blockchain Association CEO Summer Mersinger will attend the hearing as an invited witness.
GateNews2h ago
US CFTC Releases Crypto Asset Collateral Pilot Guidance: BTC/ETH Capital Adequacy Ratio 20%, Stablecoins 2%
The U.S. Commodity Futures Trading Commission (CFTC) has released guidance on a pilot program for crypto assets as collateral, allowing Bitcoin, Ethereum, and stablecoins to be used as margin. Futures brokers must comply with capital requirements and regulatory reporting obligations, and after three months can expand to other crypto assets as collateral. The guidance clarifies the use cases for crypto assets and derivatives clearing requirements.
GateNews3h ago
Kalshi Faces TRO in Nevada Over Event-based Markets
A Nevada court issued a temporary restraining order against Kalshi, preventing it from offering event-based contracts without proper licensing. This reflects growing regulatory scrutiny on prediction markets, which face challenges in classification and regulation, especially concerning gambling laws.
TodayqNews11h ago
