Trump Cryptocurrency Empire Collapses! Shocking Disappearance of $1 Billion in Family Assets

Eric Trump, the second son of President Trump, co-founded American Bitcoin, whose stock price plunged 33% within the first minute of trading on December 2, ultimately crashing over 51%. Trump crypto projects are collapsing across the board: WLFI token dropped 51%, ALT5 Sigma plummeted 75%, and the TRUMP and MELANIA meme coins are down 90% and 99% from their all-time highs, respectively. According to Bloomberg, the Trump family has lost over $1 billion in assets since October, as the Trump premium turns into the Trump drag.

The Collapse of Trump Crypto Symbolized by the American Bitcoin Stock Crash

(Source: Bloomberg)

American Bitcoin, a cryptocurrency mining company co-founded by Eric Trump and others, saw its stock price plunge during U.S. stock market trading on December 2. It happened in an instant: just one minute after opening, at 9:31 AM, the stock was down 33%. Five minutes later, it was down 42%, and by 9:56 AM, the decline exceeded 51%.

The collapse of American Bitcoin’s stock price is striking, not only reflecting the sharp downturn in the crypto market at the end of 2025, but also serving as a symbol of the collapse of the Trump-backed crypto startups the family has promoted in the past year. While the broader crypto market has fallen around 25% over the past two months, the drop in Trump-related projects has been much steeper.

Eric Trump, the president’s son, serves as Chief Strategy Officer and is a co-founder, while Donald Trump Jr. is a shareholder. As the Trump family runs crypto businesses and simultaneously promotes crypto trading, criticism of conflicts of interest has intensified. With the sharp drop on December 2, American Bitcoin’s total decline reached 75%.

Complete Collapse of the Trump Family’s Crypto Projects

The WLFI token, issued by World Liberty Financial—co-founded by Trump and his sons—has dropped 51% from its early September peak, a much steeper decline than Bitcoin or typical small-cap digital tokens. World Liberty Financial, the core project of the Trump crypto empire, had secured a $75 million investment from crypto billionaire Justin Sun.

However, even this major investment could not stop the price drop. The WLFI token fell from its September high of $0.31 to $0.158, losing about 49% of its value. Trump and his sons hold 22.5 billion WLFI tokens through DT Marks DEFI LLC, and this price fall directly hit the family’s assets.

ALT5 Sigma, another Trump-affiliated company, is facing mounting legal issues and its stock price has crashed about 75%. Meme coins named after the president and First Lady Melania lost about 90% and 99% of their value from January highs. The collapse of the TRUMP and MELANIA meme coins epitomizes the speculative nature of Trump crypto projects.

Decline Rates of Trump Family Crypto Projects

American Bitcoin stock: Down 75% (including December 2 crash)

WLFI token: Down 51% (from September peak)

ALT5 Sigma stock: Down about 75%

TRUMP meme coin: Down about 90% (from January high)

MELANIA meme coin: Down about 99% (from January high)

These developments have dealt a major blow to the Trump family’s massive crypto-related wealth accumulated this year. According to the Bloomberg Billionaires Index, over $1 billion in assets built through crypto ventures and other businesses have been wiped out since October’s downturn.

From Trump Premium to Trump Drag

The collapse of Trump crypto projects has broader significance for both the digital asset sector and the president’s public image. Trump’s support initially fueled price surges in various tokens during the early phase of his second term, turning Bitcoin’s price into a barometer of his political success.

Now, the so-called Trump premium has suddenly turned into the Trump drag, toppling one of the key pillars supporting crypto assets. This shows how quickly trust in these speculative markets—and even in the president himself—can evaporate.

Professor Hilary Allen of American University Washington College of Law notes, “In terms of legitimacy, it was a double-edged sword. Trump launched his own crypto projects, but many rapidly lost their value. If the goal was to gain legitimacy through the Trump family, it failed.”

It’s been a year since Trump’s presidential victory. Investigations into several family companies reveal that the Trump family built a crypto business empire worth around $10 billion in just one year—unprecedented for the nation’s most powerful political family. This raises the specter of political corruption risks.

American Bitcoin’s Performance and Conflict of Interest Criticism

American Bitcoin, the crypto mining company supported by Trump’s two sons, reported a $3.5 million net profit for Q3, reversing a $600,000 net loss from the previous year, thanks to wider margins.

Q3 revenue was $64.2 million, up from $11.6 million a year ago. Gross margin expanded from 49% to 56%. As the Trump administration has eased crypto regulations, interest in crypto trading has surged this year, and Bitcoin trading volumes have reached record highs.

Despite improved performance, the stock crashed, indicating investor doubts about the sustainability of Trump crypto projects. Bitcoin’s recent sharp price drop has also squeezed mining company profits.

Trump’s approach, where his family runs crypto businesses while he promotes crypto trading, has drawn criticism for conflicts of interest. The president’s pro-crypto policies benefiting his own family’s businesses is an unprecedented conflict issue in U.S. history.

World Liberty Financial and the Meme Coin Debacle

WLFI, the token from World Liberty Financial founded by Trump and his sons, fell 51% from its September peak. The value of the 22.5 billion WLFI tokens held via DT Marks DEFI LLC has dropped sharply as a result.

Even Justin Sun’s $75 million investment couldn’t stop WLFI’s fall. WLFI, which debuted in September at $0.31, now trades at $0.158. World Liberty Financial later introduced the USD1 stablecoin, reaching a market cap of about $2.6 billion, but the parent WLFI token’s price slump has damaged the project’s credibility.

The collapse of meme coins named after the president and Melania further exposed the speculative nature of Trump crypto projects. The TRUMP meme coin is down about 90% from its January high, and the MELANIA meme coin has lost about 99% of its value. These meme coins had no use beyond speculation and depended solely on the Trump family brand; once market confidence faltered, they rapidly lost value.

Contradictions between Trump’s Crypto Policy and Family Business

It’s been a year since Trump’s presidential win. Investigations into several family companies reveal that the Trumps built a crypto business empire worth around $10 billion in just one year—unprecedented for the nation’s most powerful political family.

The Trump administration’s easing of crypto regulations highlights this contradiction. While the president pushes pro-crypto policy, his family reaps massive profits from the sector, creating a conflict of interest with no precedent. On his first day in office, Trump fired crypto skeptic SEC Chair Gary Gensler and appointed crypto supporter Paul Atkins.

The SEC subsequently dropped or settled lawsuits with several companies, including Ripple Labs and Consensys. In April, the DOJ announced, by executive order, that it would not prosecute digital asset regulatory violations unless “intentional.” These policy decisions have directly benefited the Trump family’s crypto business.

Now, the so-called Trump premium has suddenly become a Trump drag, toppling a key pillar supporting crypto assets. This highlights how quickly trust in these speculative markets—and even in the president himself—can disappear.

Failure to Gain Legitimacy and Loss of Trust

Professor Hilary Allen of American University Washington College of Law said, “In terms of legitimacy, it was a double-edged sword. Trump launched his own crypto projects, but many rapidly lost their value. If the aim was to gain legitimacy through the Trump family, it did not succeed.”

This points to the fundamental flaw in the Trump crypto project. The strategy of leveraging the president’s fame and brand value for legitimacy seemed to work in the short term—evidenced by the WLFI token’s initial sales and the TRUMP meme coin’s surge.

However, without real value creation or a sustainable business model, brand value alone couldn’t prop up prices. The much steeper declines in Trump-linked projects compared to the wider crypto market show investors are treating these assets as hollow speculation.

World Liberty Financial and the Trump meme coin affiliate “Fight Fight Fight” did not respond to requests for comment. Their silence suggests the Trump family may not have a clear plan for dealing with the current crisis.

The Paradox of Strong Earnings but Stock Crash

Interestingly, American Bitcoin posted strong Q3 results. Net profit reached $3.5 million, a turnaround from a $600,000 loss a year ago, and revenue rose to $64.2 million from $11.6 million. Gross margin expanded from 49% to 56%.

Yet despite the improved results, the stock crashed, showing that investors care more about long-term sustainability than short-term earnings. While the Trump administration’s deregulation has boosted crypto trading, Bitcoin’s recent plunge casts doubt on miners’ future profitability.

Outlook and Investor Warning

The collapse of the Trump crypto empire highlights the dangers of mixing political power with crypto business. A structure where the president’s policy decisions directly benefit his family’s enterprises is a major warning sign for investors. Business models dependent on political support are extremely vulnerable to shifts in political climate and loss of market trust.

According to the Bloomberg Billionaires Index, the Trump family has lost more than $1 billion in assets since October’s downturn. This rapid asset loss illustrates both the extreme volatility of crypto markets and the risks of projects built solely on brand value.

FAQ

Why did the Trump family’s crypto business collapse?

In addition to the overall crypto market downturn, Trump-related projects failed to create real value or sustainable business models. Speculative assets relying solely on brand value rapidly lose worth when market trust fades.

How much did American Bitcoin stock drop?

It plunged 33% in the first minute of December 2 trading, ultimately crashing over 51%, and cumulating a 75% decline—far exceeding the broader crypto market.

What’s the status of World Liberty Financial’s WLFI token?

It has dropped 51% from its September peak of $0.31 to $0.158. Even Justin Sun’s $75 million investment couldn’t stop the decline.

How much has the Trump family lost in crypto ventures?

According to the Bloomberg Billionaires Index, the Trump family has lost over $1 billion in assets since October’s downturn.

How is the conflict of interest issue being viewed?

The president driving pro-crypto policies while his family profits from the industry is being criticized as an unprecedented conflict of interest in U.S. history.

Is American Bitcoin’s performance deteriorating?

Q3 saw a return to profitability and increased revenue, but Bitcoin’s recent sharp decline raises questions about future earnings.