Trump-Backed DeFi Project Under Pressure as ETH Holdings Sold at Heavy Loss

A wallet believed to be connected to World Liberty Financial (WLFI), a decentralized finance platform backed by the U.S. President Donald Trump, has reportedly offloaded millions in Ethereum (ETH) far below its purchase price—raising eyebrows in the crypto community.

Blockchain intelligence platform Lookonchain reports that the wallet sold 5,471 ETH worth roughly $8 million at an average price of $1,465.

That’s a steep decline from WLFI’s earlier acquisition of 67,498 ETH at an average of $3,259 per token—leaving the project with a paper loss exceeding $125 million.

While the ownership of the wallet isn’t definitively confirmed, the pattern suggests significant movement from addresses linked to WLFI. Trump launched the platform late last year, positioning it as a financial alternative for individuals excluded from traditional banking systems.

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This ETH sell-off comes as market conditions worsen across the board. Lookonchain also flagged large-scale Solana (SOL) liquidations by whales, some of whom appear to be covering leveraged positions. One whale holding over $190 million in SOL reportedly sold $10.7 million in the last half hour alone.

As both major institutions and DeFi whales retreat from volatile altcoins, questions are emerging about how long platforms like WLFI can sustain operations—and whether further liquidations are looming.

Alexander Stefanov