Trump Family's Crypto Bet Goes Bust: A $1 Billion Lesson in Risk

Cryptocurrency Investments Lead to Significant Losses

The Trump family's financial portfolio has experienced a substantial decline, losing approximately $1 billion in recent months. This downturn is primarily attributed to the declining value of cryptocurrencies, in which the family has heavily invested.

According to Bloomberg News, their net worth has decreased from $7.7 billion to $6.7 billion since September.

Major Losses in Key Investments

Trump Media & Technology Group

One of the most significant losses came from Trump Media & Technology Group, the company behind Truth Social. The value of their shares hit a record low, wiping out around $800 million from Trump's stake. The company had invested heavily in Bitcoin, purchasing approximately 11,500 coins at an average price of $115,000. However, the value of these coins has dropped by about 25%, resulting in a substantial loss.

World Liberty Financial

Another project, World Liberty Financial, also saw a significant drop in value. The WLFI token, once worth $6 billion, is now only worth about half of that. Despite this, a spokesperson for the project remains optimistic, stating that crypto is still a viable investment for the long term.

Eric Trump's Bitcoin Mining Venture

Eric Trump's Bitcoin mining venture hasn't fared much better. He and Donald Trump Jr. partnered with Hut 8 Corp to form American Bitcoin Corp, but the value of the company's shares has halved since September. This has cost Eric Trump over $300 million. Additionally, the Trump-branded 'memecoin' has lost about $117 million in value since August and is now worth around $310 million.

Policy and Controversy

The Trump family's financial losses come at a time when they are pushing for policies that support cryptocurrencies. In January, President Trump signed an executive order to promote the growth of digital assets. By March, he had established a national strategic Bitcoin reserve, claiming it would position the US as a leader in digital asset strategy.

These policies have raised some eyebrows, especially when combined with the family's private investments. In May, Trump invited major stakeholders in his memecoin to a gala dinner, which prompted watchdog groups to warn of potential ethics violations. The administration has denied any conflict of interest.

Further controversy arose in October when Trump pardoned Changpeng Zhao, the co-founder of Binance. Zhao had pleaded guilty to enabling money laundering and served a four-month prison sentence. He had previously promoted World Liberty Financial, which boosted the Trump family's wealth early in Trump's current term. Critics questioned whether the pardon was linked to Zhao's role in supporting the family's ventures. The White House defended the decision, framing it as a response to what it called former President Joe Biden's 'war on cryptocurrency.'

Ethical Concerns and Future Outlook

The collapse of $1 billion in family wealth highlights the risks of tying presidential fortunes to volatile markets. While Eric Trump insists the downturn is 'a great buying opportunity,' critics argue that the overlap between public policy and private investment raises serious ethical concerns.

For supporters, the family's resilience mirrors the cyclical nature of Bitcoin itself, which has repeatedly rebounded after sharp declines. For detractors, the losses highlight the fragility of an empire built on speculative assets and the blurred lines between presidential power and personal profit.