Trump Crypto Projects Facing Lawsuit, Potential Ethics Crackdown, and More

Trump-linked crypto ventures are facing significant pressure from multiple directions. World Liberty Financial is now the subject of a lawsuit filed by crypto billionaire Justin Sun. Additionally, the CLARITY Act could add wording that would block Trump from earning money through crypto while in office. Eric Trump has reportedly been removed from the leadership section of the Alt5 Sigma Corp website. The Trump family reportedly earned $1.4 billion from crypto-related activities in 2025, covering losses in other areas of their business. However, World Liberty Financial and other Trump-affiliated crypto projects have since been thrown into turmoil. The ethics provisions that may be added to the CLARITY Act are especially notable because much of the reported profiteering ties back to Trump's presidency. Democrats have pressed for ethics and corruption concerns to be addressed in the CLARITY Act. Industry watchers believe the measure needs to clear Congress before the November midterm elections. World Liberty Financial is also facing a lawsuit from Tron founder Justin Sun. The suit centers on World Liberty Financial freezing assets that belonged to Sun and his related entities. World Liberty Financial also recently drew criticism for borrowing stablecoins while using its own proprietary tokens as collateral. Alt5 Sigma Corp is another Trump-connected company now dealing with setbacks, as the company's stock is down roughly 85% over the past year. Democrats have now also sent a letter to Commerce Secretary Howard Lutnick regarding a potential conflict of interest with Tether. The wider crypto industry as a whole is also dealing with a crisis of purpose at this time, mainly in terms of all of the centralization that has been exposed in the industry over the past few months.

(Source：Gizmodo)