World Liberty Financial Dumps Ethereum (ETH) Despite $125M in Losses

U.S. President Donald Trump’s World Liberty Financial (WLFI) has reportedly sold 5,471 Ethereum (ETH) tokens at a realized loss of over 55%. The sale comes after a major crypto market crash on April 7 that has sent ETH prices below $1,500 for the first time in over two years.

According to blockchain data from Lookonchain, a wallet linked to WLFI sold 5,471 ETH for around $8 million, averaging $1,465 per token. WLFI had previously bought 67,498 ETH at an average of $3,259, which means the platform has now taken a 55% loss on this portion and is sitting on an estimated $125 million in losses.

The crypto market has been under pressure since early April. President Trump’s recent announcement of new tariffs on imports from China, Mexico, and Canada caused global market fears. Risky assets like cryptocurrencies dropped sharply in response. Bitcoin fell below $75,000 and Ethereum reached a low of $1,438 on April 7 .

Over $996 million in crypto positions were liquidated across major exchanges that day. The Crypto Fear & Greed Index dropped to 17, indicating “Extreme Fear” among investors. If selling pressure from large holders like WLFI continues, analysts warn that Ethereum could fall below the $1,000 mark.

Why Did WLFI Sell Ethereum (ETH) at a Loss?

WLFI was once seen as a major Ethereum supporter. Its large ETH purchases showed long-term confidence. However, its recent decision to sell at a steep loss suggests financial pressure or a change in direction.

One likely reason is liquidity needs. WLFI has been expanding, working on new partnerships, and preparing to launch a stablecoin called USD1. Selling ETH, even at a loss, may have helped cover costs or raise funds for new projects.

Another reason is risk management. Ethereum’s price has fallen over 56% since the beginning of the year. By reducing its ETH holdings, WLFI may be trying to limit losses and protect its portfolio from further downside.

There may also be regulatory pressure. The U.S. SEC is reportedly looking into WLFI’s finances. The company is also facing criticism for allegedly funneling $400 million in insider fees from the $550 million it raised. Selling ETH may help the firm appear more stable or responsive under scrutiny.

Even after selling ETH at loss, WLFI wallet currently holds 7933 ETH worth $11 million.

Is This When We Are Supposed to Thank Eric?”

Eric Trump’s post on X has led to accusations of market manipulation. On Feb. 3, he publicly encouraged his followers to buy Ethereum, writing:

“In my opinion, it’s great to add $ETH. You can thank me later.”

The post quickly drove ETH prices up by nearly 25%. But just days later, the gains evaporated—and ETH price started declining. Blockchain data revealed that over $175 million in Ethereum was reportedly transferred from WLFI wallets shortly after the tweet. 

Critics now allege that the post was made to pump ETH price and intended to create short-term buying pressure before insiders sold.

While there is no formal evidence of coordinated manipulation, the sequence of events has fueled public distrust. 

Crypto investor Chris Bakke sarcastically wrote:

“If you invested $100,000 in ETH at the time of this post, you’d have $46,782 and be divorced by now.”