PALM BEACH, USA — Former President Donald Trump and his family unveiled a new cryptocurrency business, World Liberty Financial, in a virtual address Monday, September 16, 2024, from Mar-a-Lago.
The latest venture is positioned to benefit Trump financially as he campaigns for another term in the White House.
The details of the company remain sparse, but Donald Trump Jr. hinted that the firm will target individuals unable to secure financing from traditional banks.
During the announcement, the former president expressed optimism about the cryptocurrency sector.
“It’s very young and very growing,” Trump said of the industry. “I do believe in it.”
Ethical Concerns Surrounding New Business Venture
The launch of World Liberty Financial comes with 50 days remaining before the 2024 presidential election, raising significant ethical questions about how Trump could benefit from cryptocurrency policies if re-elected.
Government watchdog groups have expressed concern about the timing, noting that no previous presidential candidate has launched such a business venture so close to an election.
“You generally see presidential candidates try to separate themselves from their conflicts of interest instead of bringing new ones into the fold,” said Jordan Libowitz of Citizens for Responsibility and Ethics in Washington.
“It’s definitely new to see a president launching a new company while also at the same time talking up new policies that would potentially directly affect that company.”
Trump has already pledged to fire Securities and Exchange Commission (SEC) Chair Gary Gensler, who has been criticized by the cryptocurrency industry for his regulatory stance, and has promised to create a “strategic national bitcoin stockpile.”
These policy commitments have raised concerns about potential conflicts of interest should Trump return to the White House.
Leveraging Business and Politics
Trump, a businessman before his political career, has a history of merging his business ventures with his political endeavors.
In recent years, he has capitalized on his fame and presidency through various licensing deals, including digital trading cards and NFTs (non-fungible tokens).
Trump’s cryptocurrency business follows in the footsteps of other ventures aimed at monetizing his image and political moments.
While World Liberty Financial could appeal to Trump’s base and the cryptocurrency community, legal and financial experts warn of the risks.
Yesha Yadav, a professor at Vanderbilt University, raised concerns about how the next president might handle the volatile industry, particularly if that president is Trump.
“He would be in a position to directly impact the fortunes of this company,” Yadav noted, adding that regulatory scrutiny could come into play if the business attracts hackers or faces enforcement actions.
Security Risks and Investor Caution
Cryptocurrency markets have experienced notable high-profile fraud cases and hacks in recent years, prompting additional caution about Trump’s involvement.
Supporters of decentralized finance, or “DeFi,” including Trump backers, worry that the company could become a prime target for hackers.
Nic Carter, a crypto investor and Trump supporter, warned on X (formerly Twitter) that World Liberty Financial could be “the juiciest DeFi target ever” for cybercriminals.
The business faces the challenge of balancing innovation with security while navigating regulatory challenges in the highly speculative cryptocurrency space.
Already, hackers have taken advantage of the venture’s announcement by hijacking the X accounts of Trump’s daughter Tiffany and daughter-in-law Lara, posting fake links to websites masquerading as official World Liberty Financial platforms.
The official social media account for the company has warned followers: “Beware of Scams! Fake tokens & airdrop offers are circulating. We aren’t live yet!”
As Trump’s campaign for the 2024 presidency ramps up, the ethical, financial, and security concerns surrounding his latest business venture will continue to draw scrutiny.
