Trump Family Entity Nets $500M in "Circular" Crypto Deal
NEWS & RESEARCH
The Deal: Alt5 Sigma recently announced a leadership takeover by World Liberty Financial (WLF) executives Eric Trump, Zach Witkoff, and Zachary Folkman. Simultaneously, Alt5 acquired $1.5 billion in WLF’s cryptocurrency tokens ($WLFI).
The Result: This "circular deal" reportedly routed over $500 million to a Trump-affiliated entity. While $WLFI’s public trading price plummeted following its launch, the private Alt5 agreement secured hundreds of millions for the Trump family.
SOURCES: New York Times | Forbes
ANALYSIS & OPINION
Critics describe the arrangement as a "mind-boggling conflict of interest," where WLF executives steered a separate company to purchase their own tokens to benefit the Trump family. Corey Frayer, a former SEC crypto policy official, noted that the Alt5-WLF structure "brings the worst practices of the crypto ecosystem into regulated public markets."
SOURCES: New Yorker | Wall Street Journal
HOW TO FIX IT
Congressional action:
Restrict Executive Crypto Profits: Pass the Stop TRUMP in Crypto Act and End Crypto Corruption Act to prohibit the President, VP, and their families from benefiting from crypto assets they endorse or issue.
Strengthen Conflict Laws: Amend the Ethics in Government Act of 1978 to require presidents and vice presidents to disclose and divest all assets that might present a conflict of interest in violation of the Emoluments Clauses by passing the Presidential Conflicts of Interest Accountability Act of 2026 and other conflict of interest reforms.
Enforce Blind Trusts: Mandate that presidential investments be placed into a qualified blind trust to eliminate personal financial incentives in policy-making.
Demand SEC Transparency: Require the SEC to provide full disclosure on regulatory decisions involving politically exposed crypto assets.
Legislation: H.R.3573 - Stop TRUMP in Crypto Act of 2025 | S.1668 - End Crypto Corruption Act of 2025 | H.R.7207 - Presidential Conflicts of Interest Accountability Act
