The Trump family-associated crypto venture World Liberty is facing mounting pressure after its WLFI token fell nearly 16 per cent over the past month, triggered by revelations that the firm borrowed $75mn against roughly $440mn worth of its own tokens. The move, disclosed in public blockchain data, has sparked concerns among traders that any forced liquidation of collateral could further depress the token’s value and deepen losses for investors.

Criticism escalated after crypto billionaire Justin Sun, one of World Liberty’s largest backers with a $75mn investment in WLFI tokens, publicly attacked the project’s governance structure. Sun, who has also invested heavily in Trump-related digital assets, accused the team of exploiting…