The Trump family earned approximately $500 million after the Nasdaq-listed company Alt5 Sigma, later renamed AI Financial Corp., purchased tokens issued by World Liberty Financial, the crypto business founded by Eric Trump, Donald Trump Jr., and other partners. However, investors who financed the deal subsequently recorded losses of over 90%, amid the collapse of the stock and the depreciation of digital assets, according to CNBC.
AI Financial Corp. became an example of the risks associated with investments in crypto businesses linked to the family of US President Donald Trump, after its stock value crashed by about 93% in less than a year from closing a $1.5 billion deal with World Liberty Financial.
In August 2025, Alt5 Sigma announced it would buy WLFI tokens issued by World Liberty Financial. To finance the operation, the company raised $750 million from investors and issued new shares, using the funds to purchase the digital assets.
According to documents published by World Liberty Financial, the Trump family was entitled to approximately 75% of the revenue generated from the token sale, meaning they collected about $500 million from the deal, after deducting certain expenses and fees.
At the time of the announcement of the agreement, Alt5 Sigma shares were trading at nearly $9. Currently, AI Financial shares are worth about $0.66, and the company risks being delisted from Nasdaq if it fails to bring its stock price back above the minimum threshold required by the exchange.
The problems do not stop there. AI Financial recently warned investors that there are significant doubts about the company's ability to continue its operations over the next 12 months. In the first quarter of the year, the value of WLFI tokens held by the company decreased by approximately $348 million, and liabilities exceeded assets.
Several watchdog organizations and former financial regulatory officials have called on US authorities to analyze the transaction and how the company informed its investors. Critics say there are numerous question marks regarding the transparency and corporate governance of the company.
The White House, however, rejected any accusations of conflict of interest, stating that the president's assets are managed through a trust controlled by his children and that there is no incompatibility between the presidential office and the family's businesses.
Currently, AI Financial's market capitalization is about $89 million, while the value of WLFI tokens held by the company has dropped by approximately 72% from the level at which they were purchased.
Investors who bet on the success of the Trump family-associated crypto business are thus facing some of the largest losses recorded in the digital asset market over the past year.
