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Bitcoin News

Trump-Backed WLFI Sells $5M in Wrapped Bitcoin Amid Rising US Scrutiny

Trump’s World Liberty Financial exits $5M Wrapped Bitcoin position via Aave and CoW protocol as U.S. lawmakers investigate potential conflicts.

Written By Vanshita Kanjani
Fact Checked by Jahnu Jagtap
Published February 5, 2026 11:04 PM·Updated 7 months ago
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Trump-Backed WLFI Sells $5M in Wrapped Bitcoin Amid Rising US Scrutiny

Key Highlights

  • World Liberty Financial executed a series of rapid transactions to sell $5 million worth of Wrapped Bitcoin. 
  • On-chain data shows the firm offloaded 73 WBTC for USDC, likely at a loss.
  • The sale coincides with a Congressional investigation into a reported $500 million UAE-linked funding deal.

World Liberty Financial (WLFI), a crypto project backed by U.S. President Donald Trump and his family, has sold about $5 million worth of Wrapped Bitcoin (WBTC), according to on-chain data. This sale comes as the Trump-linked crypto venture faces fresh scrutiny from U.S. lawmakers.

Data from Arkham Intelligence shows that a wallet linked to World Liberty made several WBTC-related transactions in quick succession on February 5. The transactions moved assets through Aave and CoW Protocol. They resulted in converting WBTC into USDC, totaling around $5 million at current market prices.

World Liberty sells WBTC
World Liberty sells WBTC | Source: Arkham

The transactions were completed within a short time frame, suggesting an intentional unwinding of positions rather than managing liquidity normally.

Bitcoin price context

The sale occurred while Bitcoin was trading near the $70,000 range, well below its late-2025 highs. The overall market has remained unstable due to recent macro and regulatory changes in the U.S.

At the time of writing, Bitcoin is trading at $67,385, reflecting a decline of approximately 8.45% over the last 24 hours. The total market capitalization for Bitcoin has retreated to approximately $1.35 trillion, with a 7.55% decline, contributing to a broader market pullback. The circulating supply remains at approximately 19.98 million BTC out of the max supply of 21 million BTC.

When World Liberty bought Bitcoin

On-chain history tied to the same wallet shows that World Liberty acquired WBTC in late 2025 and early 2026, when Bitcoin was selling for much higher, often above $90,000. These earlier purchases are visible in Arkham’s explorer under the same address now executing the sale transactions.

Since blockchain transactions are timestamped and tied to block data, the time frame for accumulation and the current sale can be verified independently.

Profit or Loss assessment

Based on the difference between acquisition prices and current market levels, the recent WBTC sale likely reflects a realized loss. While the exact cost basis depends on the specific purchase levels, the available on-chain data suggests that World Liberty sold at a loss compared to its average buying price.

There is no sign that the WBTC was hedged through derivatives or balanced with long positions elsewhere on-chain.

Sale coincides with lawmaker probe

The timing of the sale aligns with a new investigation by U.S. lawmakers into World Liberty Financial’s ownership and funding, particularly a reported $500 million investment from UAE-linked entities.

Members of Congress have expressed concerns about potential conflicts of interest due to World Liberty’s political connections and the timing of major funding events in relation to discussions on crypto regulation. Lawmakers are looking for more information on governance, investor influence, and capital flows related to the platform.

Although there is no evidence linking the WBTC sale to the investigation, the transaction takes place amid increased political and regulatory scrutiny of the firm.

This sale is not a routine treasury rebalancing. It marks an exit during a time of lower prices when World Liberty faces greater scrutiny from US regulators and lawmakers. For market watchers, this move raises concerns about internal risk management, liquidity needs, and broader strategic positioning as political pressure increases.

Also Read: World Liberty Fi’s USD1 Proposal Passed: But Who is Pulling the String?

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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