Trump's $1 Billion Crypto Collapse Fuels Scrutiny Over Family Ventures and Presidential Ethics

President Donald Trump's family fortune has contracted by approximately $1 billion (£795 million) in recent months, driven by steep declines across the wider cryptocurrency market. According to data from Bloomberg News, the First Family's net worth now stands at roughly $6.7 billion, down from $7.7 billion in September, with the losses directly tied to their extensive and volatile holdings in the digital asset sector.

Heavy Losses Across Ventures

One of the sharpest declines affected Trump Media & Technology Group Corp, the parent company of Truth Social. Shares in the firm fell to a record low, erasing around $800 million from Trump's stake since September. The company had pivoted to invest heavily in Bitcoin, purchasing approximately 11,500 coins at an average price of $115,000. Bloomberg News estimated the position had lost roughly 25 per cent of its value, a significant blow to the company's balance sheet.

The family's flagship crypto project, World Liberty Financial, also saw its valuation collapse. The WLFI token, which once peaked at a total market value of $6 billion, is now worth just over half that figure. The token is currently trading at around 15 cents, compared with 26 cents in September. Despite the sell-off, a spokesperson for the project maintained that 'crypto is here to stay' and expressed long-term confidence in the viability of digital assets.

Eric Trump's Bitcoin mining venture has suffered similar setbacks amid a difficult environment for industrial miners. He and Donald Trump Jr. partnered with Hut 8 Corp to form American Bitcoin Corp, but shares in the Nasdaq-listed partner company have halved since September. The decline has wiped out more than $300 million from Eric Trump's fortune. Meanwhile, the Trump-branded 'memecoin' launched in January has dropped by about $117 million in value since August, and is now worth around $310 million.

Crypto‑Friendly Policies Under Fire

The financial losses come as Trump pursues a notably crypto‑friendly agenda. In January, he signed an executive order promoting the growth of digital assets, reversing earlier restrictions. By March, he had established a national strategic Bitcoin reserve, claiming it positioned the US 'as a leader among nations in government digital asset strategy.'

These moves have drawn scrutiny, particularly when combined with the family's private investments. In May, Trump invited major stakeholders in his memecoin to a gala dinner, prompting watchdog groups to warn of potential ethics violations. Norm Eisen, a former White House special counsel, described the event as 'an ethics nightmare.' The administration denied any conflict of interest.

Controversial Pardon

Further controversy arose in October when Trump pardoned Changpeng Zhao, 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, boosting 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.'

Ethics and Fortune Intertwined

The collapse of $1 billion in family wealth underscores the risks of tying presidential fortunes to volatile markets. While Eric Trump insisted the downturn was '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.