Crypto Times Logo Black
Google News Follow Banner
  • News
    • Market
    • Bitcoin
    • Ethereum
    • Altcoins
    • Regulations & Policies
    • DeFi News
    • Blockchain News
    • Industry
  • Exclusive
    ExclusiveShow More
    Kevin Warsh's First FOMC What It Means for Bitcoin and Crypto
    Bitcoin and the ‘Fed Chair Curse’: What Kevin Warsh’s First FOMC Means for Crypto
    Crypto Tax Overhaul What Congress’s New Framework Means for 60M Americans
    Crypto Tax Overhaul: What Congress’s New Framework Means for 60M Americans
    One Laptop, $36 Million, and a Token Collapse Inside the Humanity Protocol Exploit
    Humanity Protocol $36M Exploit: 447M $H Hit After Laptop Breach and Multisig Failure
    SpaceX IPO: Kraken, Bybit, Coinbase, & Binance Lead the Crypto Rush
    SpaceX IPO: Kraken, Bybit, Coinbase, & Binance Lead the Crypto Rush
    Crypto’s Biggest Hypocrite Arthur Hayes Shills Tokens Then Dumps on His Followers
    Crypto’s Biggest Hypocrite: Arthur Hayes Shills Tokens Then Dumps on His Followers
  • Opinion
    OpinionShow More
    The Arthur Hayes Paradox Macro Prophet or Market Opportunist
    The Arthur Hayes Paradox: Macro Prophet or Market Opportunist?
    RBI Denies Gold Sale Amid Oil Crisis: Could It Speed Up India's Digital Rupee Push?
    RBI Denies Gold Sale Amid Oil Crisis: Could It Speed Up India’s Digital Rupee Push?
    The CLARITY Act War Starts Jamie Dimon Vs Armstrong
    The CLARITY Act War Starts: Jamie Dimon Vs Armstrong
    Is Crypto Dying, or Is Pump.fun Turning It Into an Attention Casino
    Is Crypto Dying, or Is Pump.fun Turning It Into an Attention Casino?
    CoinSwitch on TMKOC India Saw a ₹100 Crypto Pitch, But Not the Risks Behind It_
    CoinSwitch on TMKOC: India Saw a ₹100 Crypto Pitch, But Not the Risks Behind It
  • Learn
    • Explained
    • How To
    • Insights
  • Podcasts
  • More
    • About Us
    • Our Authors
    • Contact Us
    • Editorial Policy
The Crypto TimesThe Crypto Times
  • All News
  • Market
  • Bitcoin
  • Ethereum
  • Altcoins
  • Regulations & Policies
  • Blockchain
  • DeFi
  • Industry
  • Exclusive
  • Opinion
Search
  • News
    • Market
    • Bitcoin
    • Ethereum
    • Altcoins
    • Regulations & Policies
    • Blockchain
    • DeFi
    • Industry
    • Exclusive
    • Opinion
  • Learn
    • Explained
    • How To
    • Insights
  • Quick Links
    • About Us
    • Our Authors
    • Contact Us
    • Editorial Policy
    • AI Policy
    • Sponsored & Advertorial Policy
  • Podcasts
Follow US
© 2026 By Crypto Times. All Rights Reserved.
Bitcoin News

Trump-Backed WLFI Sells $5M in Wrapped Bitcoin Amid Rising US Scrutiny

Trump’s World Liberty Financial exits $5M Wrapped Bitcoin position via Aave and CoW protocol as U.S. lawmakers investigate potential conflicts.

Written By:
Vanshita Kanjani

Reviewed By:
Jahnu Jagtap

Last updated: February 6, 2026 11:48 AM
Published 2026-02-05
Share
Trump-Backed WLFI Sells $5M in Wrapped Bitcoin Amid Rising US Scrutiny

Key Highlights

  • World Liberty Financial executed a series of rapid transactions to sell $5 million worth of Wrapped Bitcoin. 
  • On-chain data shows the firm offloaded 73 WBTC for USDC, likely at a loss.
  • The sale coincides with a Congressional investigation into a reported $500 million UAE-linked funding deal.

World Liberty Financial (WLFI), a crypto project backed by U.S. President Donald Trump and his family, has sold about $5 million worth of Wrapped Bitcoin (WBTC), according to on-chain data. This sale comes as the Trump-linked crypto venture faces fresh scrutiny from U.S. lawmakers.

Data from Arkham Intelligence shows that a wallet linked to World Liberty made several WBTC-related transactions in quick succession on February 5. The transactions moved assets through Aave and CoW Protocol. They resulted in converting WBTC into USDC, totaling around $5 million at current market prices.

World Liberty sells WBTC
World Liberty sells WBTC | Source: Arkham

The transactions were completed within a short time frame, suggesting an intentional unwinding of positions rather than managing liquidity normally.

Bitcoin price context

The sale occurred while Bitcoin was trading near the $70,000 range, well below its late-2025 highs. The overall market has remained unstable due to recent macro and regulatory changes in the U.S.

At the time of writing, Bitcoin is trading at $67,385, reflecting a decline of approximately 8.45% over the last 24 hours. The total market capitalization for Bitcoin has retreated to approximately $1.35 trillion, with a 7.55% decline, contributing to a broader market pullback. The circulating supply remains at approximately 19.98 million BTC out of the max supply of 21 million BTC.

When World Liberty bought Bitcoin

On-chain history tied to the same wallet shows that World Liberty acquired WBTC in late 2025 and early 2026, when Bitcoin was selling for much higher, often above $90,000. These earlier purchases are visible in Arkham’s explorer under the same address now executing the sale transactions.

Since blockchain transactions are timestamped and tied to block data, the time frame for accumulation and the current sale can be verified independently.

Profit or Loss assessment

Based on the difference between acquisition prices and current market levels, the recent WBTC sale likely reflects a realized loss. While the exact cost basis depends on the specific purchase levels, the available on-chain data suggests that World Liberty sold at a loss compared to its average buying price.

There is no sign that the WBTC was hedged through derivatives or balanced with long positions elsewhere on-chain.

Sale coincides with lawmaker probe

The timing of the sale aligns with a new investigation by U.S. lawmakers into World Liberty Financial’s ownership and funding, particularly a reported $500 million investment from UAE-linked entities.

Members of Congress have expressed concerns about potential conflicts of interest due to World Liberty’s political connections and the timing of major funding events in relation to discussions on crypto regulation. Lawmakers are looking for more information on governance, investor influence, and capital flows related to the platform.

Although there is no evidence linking the WBTC sale to the investigation, the transaction takes place amid increased political and regulatory scrutiny of the firm.

This sale is not a routine treasury rebalancing. It marks an exit during a time of lower prices when World Liberty faces greater scrutiny from US regulators and lawmakers. For market watchers, this move raises concerns about internal risk management, liquidity needs, and broader strategic positioning as political pressure increases.

Also Read: World Liberty Fi’s USD1 Proposal Passed: But Who is Pulling the String?

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

Follow The Crypto Times on Google News to Stay Updated!      Google News
Google News Banner

TAGGED:Donald TrumpUnited States
Share This Article
Whatsapp Whatsapp LinkedIn Telegram Copy Link
Vanshita Kanjani - Crypto Journalist
By Vanshita Kanjani
Follow:
Vanshita Kanjani is a crypto journalist, particularly focused on delivering clear insights into regulatory frameworks and industry updates. Her educational background in English literature and prior experience at a local publication house give her a strong foundation for delivering in-depth market analysis and reports.
Jahnu Jagtap - Crypto Research Analyst at The Crypto Times
By Jahnu Jagtap
Follow:
Jahnu Jagtap is a Research Analyst with over 5 years of experience in crypto, finance, fintech, blockchain, Web3, and AI. He holds a BSc in Mathematics and is certified in Blockchain and Its Applications (SWAYAM MHRD), Cryptocurrency (Upskillist), and NISM Certifications. Jahnu specializes in technical, on-chain, and fundamental analysis, while also closely tracking global macro trends, regulations, lawsuits, and U.S. equities. With a strong analytical background and editorial insight, he drives content that delivers clarity and depth in the fast-evolving world of digital finance.

Latest News

248K Affected India's ED Cracks Down on Alleged ₹500 Crore Crypto MLM
248K Affected: India’s ED Cracks Down on Alleged ₹500 Crore Crypto MLM
Why is Ethereum Price Up Today?
Why is Ethereum Price Up Today?
$4.7M Purchase Strive Adds More Bitcoin as Treasury Strategy Grows
$4.7M Purchase: Strive Adds More Bitcoin as Treasury Strategy Grows
Kraken Rolls Out CFTC-Regulated Perpetual Futures to US Clients
Kraken Rolls Out CFTC-Regulated Perpetual Futures to US Clients
Kevin Warsh's First FOMC What It Means for Bitcoin and Crypto
Bitcoin and the ‘Fed Chair Curse’: What Kevin Warsh’s First FOMC Means for Crypto

Find Us on Socials

You may also like

Strategy Buys Bitcoin Amid Mounting Criticism

No Slowing Down — Strategy Loads Up on 1,587 More Bitcoin Amid Price Volatility

Crypto at the White House Trump-Backed USD1 Joins UFC’s $1.65M Bonus Pool

Crypto at the White House: Trump-Backed USD1 Joins UFC’s $1.65M Bonus Pool

China’s mBridge Platform Aims to Combat US Dollar Dominance

China’s mBridge Platform Aims to Combat US Dollar Dominance

Why is Bitcoin Price Up Today?

Why is Bitcoin Price Up Today?

The Crypto Times Logo PNG

Providing real-time, accurate Crypto reporting. Your trusted source for Crypto News and Research.

Stay Updated

All News
Exclusive
Opinions
Learn
Podcasts

Company

About Us
Our Authors
Editorial Policy
AI Policy
Advertorial Policy

Get In Touch

Contact Us
Career

Find Us on Socials

X-twitter Linkedin Telegram Youtube Instagram

© 2026 The Crypto Times | A BITROCK TECHNOLOGIES L.L.C. Company.

DMCA.com Protection Status
  • Terms and Conditions
  • Disclaimer
  • Privacy Policy
  • Cookie policy
Do Not Sell or Share My Personal Information