Trump’s Crypto Allies Flee Hacked Site, Cash Out Millions!

Trump’s WLFI partners ditched a hacked crypto platform, leaving users in the lurch while pocketing millions. Uncover the scandal with Trafy.io!

May 20, 2025 - 14:00
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Trump’s Crypto Allies Flee Hacked Site, Cash Out Millions!
On May 19, 2025, a Reuters report exposed troubling ties between World Liberty Financial (WLFI), a Trump family crypto venture, and its partners’ past mismanagement of Dough Finance, a decentralized exchange (DEX). Co-founders Zak Folkman and Chase Herro abandoned Dough after a July 2024 hack stole $2.5 million in user funds, including $1 million from investor Jonathan Lopez. Instead of reimbursing victims, they launched WLFI, which has funneled $400 million to Trump entities, raising ethical concerns.
What Happened?
Dough Finance, known for leveraged crypto trades, collapsed post-hack. Folkman and Herro offered victims worthless proprietary tokens, leaving users like Lopez, who lost big, frustrated and ignored. A lawsuit against Herro alleges negligence, but his team claims Lopez, a “sophisticated” investor, knew the risks. Meanwhile, WLFI, backed by crypto mogul Justin Sun, thrives, with the Trump family profiting heavily from token sales.
Why It Matters for Investors
For beginners, this highlights crypto’s risks—hacks, scams, and shady operators. WLFI’s success, despite its partners’ track record, shows how hype can outpace accountability. New investors should prioritize regulated platforms and diversify to avoid similar losses. The controversy also fuels distrust, with Democrats like Senator Blumenthal probing Trump’s crypto ventures for ethics violations.
What’s Next?
WLFI’s $550 million in token sales signals growth, but legal and regulatory scrutiny could stall it. Investors should stay cautious of projects tied to unproven teams. Follow Trafy.io for updates!
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NOTICE: The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE: The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.