World Liberty Financial, a company reportedly connected to Donald Trump’s inner circle, offloaded 4,870 ETH at an average price of $2,178 each, converting the total—approximately $10.61 million—into USDC stablecoin. The significant sale quickly drew market attention as Ethereum’s price hovered around $2,185, sliding slightly in the hours that followed.
Sales pressure and market reactions
World Liberty’s move is the latest in a series of notable treasury maneuvers by the project, which has been closely monitored within the crypto community. According to blockchain data tracking tools, the sale was executed in exchange for USDC, a dollar-pegged stablecoin frequently used to manage volatility in cryptocurrency markets. Large-scale transactions like this, especially from projects tied to prominent political figures, can have a direct impact on overall market sentiment.
The project’s own governance token, WLFI, has seen pronounced volatility in recent weeks. WLFI was last trading near $0.08, significantly down from its previous peak. With 20% of investors now able to freely move their holdings, analysts suggest a new phase in supply and demand dynamics could be on the horizon.
After World Liberty’s 4,870 ETH sale, market analysts began tracking large transactions in politically influential projects more closely, especially regarding their implications for cryptocurrency asset prices.
The company previously sparked controversy by using its WLFI token as collateral to secure a $75 million loan. US lawmakers and legal experts have questioned whether the project’s structure adequately protects investors and offers sufficient liquidity.
Global outflows hit spot Ethereum ETFs
The Ethereum market is also under pressure from sustained withdrawals from US-listed spot Ethereum ETFs. During the week of May 11–15, these products saw net outflows totaling $255.11 million.
BlackRock’s funds alone offloaded 77,567 ETH, while Fidelity sold 25,770 ETH. Grayscale parted with 7,409 ETH and ARK 21Shares sold 637 ETH. In contrast, VanEck was one of the few institutional buyers, adding ETH to its holdings instead of selling.
Overall, all US spot crypto asset ETFs experienced net outflows of $1.13 billion. Of this amount, around $1 billion stemmed from Bitcoin ETFs, signaling continued institutional exits from both Bitcoin and Ether markets.
Market and legal debates continue
Despite all these outflows, Ethereum’s price has remained relatively stable between $2,150 and $2,185. Analyst Ali Martinez noted that Ethereum has retreated to the lower bound of its current price channel, adding that holding the $2,150 support level could help the token recover. However, if further selling materializes and Ethereum crosses below $2,150, renewed weakness could emerge.
Meanwhile, the structure and use of World Liberty’s token funds remain a topic of legal scrutiny. Legal experts argue the WLFI token could potentially be subject to the Howey test for securities classification in the US, though courts have not made any definitive rulings on the matter for this project to date.
World Liberty has also made headlines due to a conflict with Tron founder Justin Sun. Following a $45 million investment in the project, Sun alleged his tokens had been frozen and his accounts restricted, preventing him from accessing his assets.
Project board members Zach Witkoff and Eric Trump publicly dismissed Sun’s claims as completely unfounded. The dispute has since become part of a broader legal battle over investor rights and project management.
