World Liberty Financial, the decentralized finance initiative co-founded by the Trump family, is preparing to unlock 16 billion WLFI tokens—worth approximately $1.28 billion—after a two-year vesting period. The move, framed as a reward for early investors, has sparked accusations of diverting attention from a deepening liquidity crisis.

Blockchain data reveals the project has been borrowing tens of millions in stablecoins using its illiquid WLFI tokens as collateral. This practice, coupled with a concentrated borrowing position on Dolomite, has trapped retail deposits and drawn legal action from early backers.

The token release coincides with mounting scrutiny over the project's financial maneuvers. Analysts warn the unlock could exacerbate selling pressure, further destabilizing WLFI's already fragile market.