Trump Family Takes $1 Billion Hit As Crypto Crash Wipes Out Fortune

The Trump family has suffered a seismic £800 million (US$1 billion) loss as a brutal collapse in the cryptocurrency market strikes at the heart of their financial empire.

Their combined net worth has fallen from around £5.87 billion ($7.7 billion) in September to £5.11 billion ($6.7 billion), according to the Bloomberg Billionaires Index, as volatility in digital-asset ventures takes a heavy toll.

Crypto Exposure Amplifies Family's Vulnerability

The family's exposure spans multiple crypto-linked businesses, from a memecoin and Bitcoin mining to a major social-media company.

At the centre is Trump Media & Technology Group, owner of the Truth Social platform. The company reportedly spent about £1.52 billion ($2 billion) to amass roughly 11,500 Bitcoin at an average price near £88,000 ($115,000) per coin.

But with the recent downturn, the stock has plunged to record lows, eroding an estimated £609 million ($800 million) from Trump's stake.

Then there is World Liberty Financial (WLFI), the Trump-family-backed crypto venture behind its own token. The WLFI token peaked at a market value of approximately £4.57 billion ($6 billion), but now trades near £0.11 ($0.15), down from £0.20 ($0.26).

That means paper holdings once worth billions have dropped by nearly half, with the family still tethered to the token's fate. And in mining, American Bitcoin Corp, co-founded by Eric Trump and Donald Trump Jr alongside Hut 8 Corp, is feeling the pain. The company's stock hit a high of £7.10 ($9.31) earlier in the year, valuing Eric Trump's roughly 7.5 per cent stake at about £480 ($630).

But shares have since lost more than half their worth, slicing more than £228.70 million ($300 million) from his wealth. To cap it off, the Trump family's own memecoin, launched in January, has shrivelled in value. Once surging, the token is now worth about £236 million ($310 million), down by about £89.19 million ($117 million) since August.

Ethics Questioned as Markets and Power Collide

These losses are not just financial; they raise serious ethical and regulatory questions. Critics point to the family's deep overlap between private crypto investments and public policy.

In January, Trump signed an executive order supporting digital assets, reversing previous restrictions; by March, he had announced the creation of a national strategic Bitcoin reserve. These policy moves coincide with the family's expanding footprint in crypto, a coincidence that worries watchdogs.

The Better Government Project, among others, has expressed alarm over potential conflicts of interest. Norm Eisen, a former White House counsel, described a May gala dinner for top memecoin holders as 'an ethics nightmare'.

Further scrutiny comes from the Trump-linked stablecoin venture, World Liberty Financial. The SEC has previously brought enforcement actions against crypto figures, including Justin Sun, who is known to have invested £57.18 million ($75 million) in WLFI and is reportedly an adviser.

In a filing, the SEC and Sun requested a court stay on fraud allegations, drawing criticism that crypto enforcement is being weakened under Trump's administration.

On a separate front, the family sent cease-and-desist letters to NFT marketplace Magic Eden and GetTrumpMemes.com over an allegedly unauthorised 'Trump wallet' project, signalling tensions over branding control.

Crisis or Opportunity? Trump Family Pushes Back

Despite the losses, the Trump family remains bullish, or at least publicly so. Eric Trump has called the downturn "a great buying opportunity", urging believers in crypto's long-term value to stand firm.

World Liberty Financial also issued a defiant statement, 'Crypto is here to stay ... we believe digital-asset technologies will radically improve financial services'.

Eric Trump, in a CNBC interview, described the family's pivot to crypto as born of necessity, banks allegedly 'debanked' them, and traditional finance became inaccessible.

The Trumps' crypto losses lay bare more than just volatility, they expose the risks of public office meshing with private gain.

If the family's financial bets unravel further, the fallout could resonate in Washington. Lawmakers are already debating tougher regulation of stablecoins and token projects.

Meanwhile, the SEC faces growing pressure. Its decision to pause action against Sun has raised eyebrows among those who believe enforcement is being rolled back under a crypto-friendly administration.