Democrat Maxine Waters Outlines ‘Scam Potential’ of Donald Trump’s DeFi Project World Liberty Financial

Key Takeaways

• Democrat Maxine Waters warned about the dangers surrounding the Trump family’s upcoming DeFi project.
• The U.S. government is increasingly exploring DeFi’s potential benefits and pitfalls.
• Much of World Liberty Financial’s application and interface has been kept secret so far.

The Trump-family-backed crypto project, World Liberty Financial (WLF), has been slammed by Democrat Maxine Waters as an example of why DeFi is dangerous. 

Waters’ comments came as the U.S. government discussed the potential benefits and pitfalls of DeFi during a congressional hearing on Tuesday, Sept. 10.

World Liberty Financial and Bad Actors 

Waters told the hearing  that despite DeFi’s aims to create greater efficiencies and transparency, it can also pose a heightened risk of “hacks, scams, unequal information, and conflicts of interest that can harm consumers and investors.”

On Tuesday, Sept. 2, the X accounts of two Donald Trump relatives, his daughter Tiffany Trump and his daughter-in-law Lara Trump, were hacked. 

The hackers posted a fake link to the upcoming DeFi project WLF in an attempt to scam potential investors. 

“Because of the prominence of those behind the project, bad actors took advantage of the opportunity to scam potential users,” Waters said. 

“Lara Trump and Tiffany Trump’s X accounts were hacked, and scammers used them to announce links to a coin, falsely claiming to represent WLF.”

Waters told the hearing that around 2,000 people purchased $1.8 million of the fake token, with the post viewed by at least 200,000 individuals. 

“Lawmakers have a responsibility here to consider strong protections to prevent such scams moving forward,” Waters said. 

A Trump-Endorsed DeFi Project

Donald Trump Jr. first announced the WLF DeFi project in August 2024 on his subscription podcast. The project will reportedly focus on lending and borrowing services similar to Dough Finance, where several of its team members originally worked.

Shortly after the initial announcement, former President Trump took to his social media platform Truth Social  to endorse his son’s project.

“For too long, the average American has been squeezed by the big banks and financial elites. It’s time we take a stand—together,” he wrote.

What Do We Know About WLF So Far?

Much of the project, including its application and interface, has been kept secret. However, the WLF took to X  last week to put some rumors to rest and tell the “real story” of the project.

“We know the magnitude of what we’re building and its potential impact on both crypto and our country, especially with the upcoming elections,” the X account outlined.

In the same post, the project also claimed to be working with some of the world’s leading security experts who have “thoroughly reviewed” the project’s code.

The experts, which include blockchain security companies PeckShield and BlockSec, will help the project to utilize “best practices” and make user security a “primary concern.”

In classic Trump fashion, the project said it aims to “make Crypto and America great by driving the mass adoption of stablecoins and decentralized finance.”

“We believe that DeFi is the future, and we’re committed to making it accessible and secure for everyone,” the project added in the thread.

About the Author

Kurt Robson

Kurt Robson is a London-based reporter at CCN with a diverse background across several prominent news outlets. Having transitioned into the world of technology journalism several years ago, Kurt has developed a keen fascination with all things AI. Kurt’s reporting blends a passion for innovation with a commitment to delivering insightful, accurate and engaging stories on the cutting edge of technology.

See more

[email protected]