Controversy Surrounds Trump Crypto Project with Ties to Major DeFi Hack

DeFi Trump

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Joel Frank

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Joel Frank

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Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...

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September 3, 2024 18:28 EDT

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Controversy is swirling around an upcoming Donald Trump-linked crypto project, which appears to have ties to a major DeFi hack, as well as other unsavory characters.

Republican Presidential Nominee Donald Trump and his sons have teased for weeks that they will soon launch a DeFi project called World Liberty.

And while no formal announcement has arrived yet, details regarding the Trump crypto project are beginning to emerge.

The project will reportedly be build on Ethereum and Aave.

Per reports in the crypto news media and across socials, the upcoming DeFi project is set to look similar to Dough Finance.

Dough Finance, a borrowing and lending decentralized application was hacked for $2.1 million via flash loans in early July.

Certik provides a full incident analysis here.

Trump Crypto Project – Who is Behind It?

It’s unclear whether the World Liberty protocol will contain the same sorts of vulnerabilities Dough Finance.

And the links to Dough Finance don’t stop at just its code.

A circulated World Liberty Whitepaper show that a crypto influencer called Chase Herro is listed as its data and strategies lead.

Hero had a link to DoughFinance on his Instagram profile.

Indeed, reports indicate that Herro and two other listed World Liberty team members, Zachary Folkman and Octavian Lojnita, created Dough Finance.

Folkman is a former “pick-up artist” who ran the dating advice platform Date Hotter Girls.

He reportedly used to teach masterclasses to students, including on how to become “alpha males”.

Herro, meanwhile, is something of a crypto influencer, having appeared on popular podcasts, including Logan Paul’s Impaulsive.

The pair have collaborated on various projects, including Subify, a rival to Patreon and OnlyFans, and used to run “mastermind groups”, a high-ticket elite networking club.

Donald Trump, meanwhile, is listed as the project’s Chief Crypto Advocate.

His sons Eric Trump and Donald Trump Jr are listed as web3 ambassadors.

Long-term Trump ally and fellow property developer Steve Witkoff and his son Zach Witkoff are also listed amongst the Trump crypto project’s leadership.

What Next for Trump Crypto Project World Liberty?

Trump crypto project World Liberty has yet to announce a launch date.

But interested readers can keep abreast with updates by following its X account here.

The project is expected to include a new cryptocurrency called WLFI.

This will likely be a non-transferable governance token, which will make speculation on it difficult to impossible.

Trump’s foray into crypto is significant, as it comes at a time as he warms to crypto technology more generally.

He pledged at the Nashville Bitcoin conference a few months ago to establish a national Bitcoin stockpile, and never sell-down the government’s holdings.