Trump-Affiliated World Liberty Financial Denies $8 Million Ethereum Sell-Off Loss

World Liberty Financial, the Trump family-backed crypto venture, has rejected claims that it sold millions in Ethereum (CRYPTO: ETH) this week during ongoing market instability.

What Happened: Responding to reports that the platform offloaded over $8 million in ETH at a steep loss, a spokesperson for the project told Decrypt that such allegations are "wholly inaccurate" and that the firm "has not sold any positions as currently reported."

The controversy stems from data circulated by Arkham Intelligence, which flagged a wallet that sold 5,471 ETH on Wednesday, coinciding with heavy crypto market losses tied to President Trump's unpredictable tariff announcements.

Arkham's CEO, Miguel Morel, said the wallet shared a Coinbase (NASDAQ:COIN) Prime deposit address with verified wallets linked to World Liberty, leading the analytics firm to mark it as "closely tied" to the Trump-affiliated crypto initiative.

Still, Morel clarified that the wallet's identity hasn't been definitively verified and remains tagged as a "predicted entity," used to guide further research rather than assert certainty.

Also Read: Block Fined $40 Million By New York Regulator Over Cash App Compliance Failures

Why It Matters: Reports speculated that if the trades were tied to World Liberty, they would have represented a substantial markdown from previous purchases made when Ethereum was trading above $3,000.

At the time of the alleged sale, ETH had dropped to around $1,465.

However, given World Liberty's larger crypto holdings, reportedly in the hundreds of millions, the financial damage from a single trade would be minimal.

Still, the timing would have raised questions about the project’s alignment with Trump's economic agenda, especially as it promotes itself as an extension of the president's broader financial philosophy.

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