A wallet linked to the Trump-associated crypto project, World Liberty Financial (WLFI), has sold 173 Wrapped Bitcoin (WBTC) for approximately $11.75 million in USDC. The sales, executed in two bursts on February 5, were a strategic move to repay loans on the Aave V3 lending protocol and reduce liquidation risk amid Bitcoin's price volatility.
The transactions involved selling 73 WBTC for $5.04 million and 100 WBTC for $6.71 million. This proactive deleveraging was initiated to avoid forced liquidation by the protocol, which could have been triggered by a further 38% drop in the value of the collateral. On-chain analysts highlight this as a defensive, risk-mitigation strategy rather than panic selling, as the firm converted volatile assets into the stablecoin USDC.
Simultaneously, WLFI is under significant political scrutiny. A U.S. congressional investigation, led by House Democrat Rep. Ro Khanna, is probing a $500 million deal between WLFI and a UAE-linked entity, Aryam Investment 1. The agreement, signed by Eric Trump on January 16, 2025, granted Aryam a 49% stake in WLFI, with $250 million paid upfront and another $250 million due by July 2025. Of the initial payment, $187 million was directed to Trump-affiliated entities. Lawmakers are examining potential conflicts of interest and foreign influence, noting the backing of Aryam by Sheikh Tahnoon bin Zayed Al Nahyan.
