Blockchain Backed Liberty Fund Enters Bear Market as Losses Reach $125 Million
Trump-Backed World Liberty Financial Begins Selling ETH as Losses Top $125M
April 9, 2025 - In a surprise move, World Liberty Financial, a cryptocurrency investment firm backed by former US President Donald Trump, has announced it will begin selling its entire Ethereum (ETH) holdings after incurring losses of over $125 million.
The decision comes as the cryptocurrency market continues to experience a downturn, with ETH plummeting to near-record lows. World Liberty Financial, which launched in 2022 with the aim of providing investment opportunities in the digital asset space, has seen its ETH holdings decline in value by over 75% since its peak in January 2025.
According to sources close to the company, the decision to sell the ETH was made after a thorough review of the firm's investment portfolio and a re-evaluation of its risk management strategy. The move is seen as a proactive step to minimize further losses and protect the interests of its investors.
"We are taking a prudent and responsible approach to managing our investment portfolio," said a spokesperson for World Liberty Financial. "While we remain committed to the potential of the cryptocurrency market, we believe it is essential to prioritize the interests of our investors and take steps to mitigate the impact of market volatility."
The sale of the ETH holdings is expected to be completed over the coming weeks, with the proceeds being used to diversify the firm's investment portfolio and reduce its exposure to the cryptocurrency market.
The news has sparked a mixed reaction among cryptocurrency enthusiasts, with some calling the move a sign of the market's volatility and others criticizing the firm's decision to sell at a perceived low point.
World Liberty Financial's decision to sell its ETH holdings comes as the cryptocurrency market continues to grapple with a range of challenges, including regulatory uncertainty and concerns over the environmental impact of proof-of-work mining. Despite the challenges, many investors remain optimistic about the long-term potential of the market, and the firm's decision to sell its ETH holdings is seen as a sign of the market's volatility.