Donald Trump‘s flagship crypto project has quietly sold billions of tokens to private investors while early backers remain locked out.

The disclosure sent WLFI to a fresh all-time low Friday, with the token slipping below 6 cents as Senate efforts to pass the crypto industry’s top legislative priority hit fresh resistance.

A Bloomberg Bombshell

A Bloomberg report this morning outlines that World Liberty quietly sold an additional 5.9 billion WLFI tokens to private investors after two earlier fundraising rounds, with much of the proceeds directed to founder-affiliated entities.

Early WLFI investors remain locked out of 80% of their holdings, according to the report.

Justin Sun, the Tron founder who invested $45 million in the project, sued World Liberty last month alleging he has not been allowed to sell a single token.

Eric Trump posted on X that “the only thing more ridiculous than the lawsuit was spending $6 million on a duct-taped banana artwork,” throwing a jibe at Sun's attention-grabbing purchase in 2024.

Crypto Industry Sours On Greatest Ally

The CLARITY Act, the crypto industry’s top Washington priority, would put digital commodities under CFTC jurisdiction and resolve a years-long SEC-CFTC turf war.

The bill has been stuck in the Senate Banking Committee since January.

Senate Banking Chair Tim Scott (R-S.C.) said Thursday he hopes to hold a markup in May, with a Senate floor vote by June or July.

One sticking point still in play is a Democrat-driven provision banning government officials from personal crypto business interests, language aimed primarily at Trump and his family.

Eswar Prasad, a Cornell University professor, said it was “surreal” to see the Trump family profit while blocking other investors from sharing in the gains.

The Polymarket contract for the Clarity Act signed into law in 2026 is currently at 46%, down from 68% last month.

ALT5 Sigma Eyes The Exit

Alt5 Sigma (NASDAQ:ALTS), the Nasdaq-listed firm that raised $1.5 billion last August to accumulate WLFI tokens, has lost roughly 90% of its value and announced an artificial intelligence pivot.

World Liberty co-founder Zach Witkoff still chairs the ALT5 board.

A recent ALT5 filing said the company may “redeem or monetize” a portion of its WLFI holdings, though CEO Tony Isaac told Bloomberg there are no plans to sell.

Trump Media (NASDAQ:DJT) has lost roughly three-quarters of its value since inauguration weekend, while the TRUMP meme coin is down more than 90% from its post-inauguration peak.

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