DWF Labs has announced a $25 million investment into World Liberty Financial (WLFI), a crypto firm reportedly backed by the Trump family. As part of this move, the Web3 investment firm also plans to open a new office in New York City, aiming to build stronger ties with regulators and financial institutions.

While the deal could boost crypto liquidity in the U.S., it’s also stirring debate due to DWF’s controversial past and the political ties involved.

A Closer Look at the DWF-WLFI Partnership

WLFI has been active since President Trump’s inauguration in January, gaining attention for its DeFi initiatives. Recently, it launched USD1, a stablecoin born from rumored talks with Binance. Now, its collaboration with Dubai-based DWF Labs marks another step toward legitimacy—at least on the surface.

According to DWF Managing Partner Andrei Grachev, the U.S. remains “the world’s largest market for digital asset innovation.” The firm’s New York office will serve as a hub for institutional investment and regulatory engagement.

So far, DWF has directly purchased $25 million worth of WLFI tokens. With a portfolio spanning over 700 crypto projects, the firm could offer significant liquidity and backing to U.S.-based startups.

Could This Move Benefit the US Crypto Market?

If executed with transparency, DWF’s U.S. expansion could be a win for Web3 innovation. Establishing a physical presence in New York would give the firm regulatory access and provide local crypto ventures with potential funding opportunities.

However, the crypto world is watching closely—especially given the political weight behind WLFI and the questionable reputation of both firms.

Allegations and Red Flags Surrounding DWF Labs

Despite its market presence, DWF Labs has faced serious allegations in the past. Reports last year accused the firm of market manipulation and wash trading, prompting an internal probe at Binance—later dropped due to alleged financial influence.

Even worse, one of DWF’s partners was removed in October following accusations of drugging a job applicant. These scandals have chipped away at the company’s public credibility.

Is WLFI a Vehicle for Political Gains?

WLFI itself isn’t without criticism. Recent reports claim most of its revenue ends up in the Trump family’s pockets, raising flags about its true purpose. Token holders have limited functionality, and governance structures remain unclear, casting doubt on WLFI’s utility beyond political fundraising.

Adding fuel to the fire, Tron founder Justin Sun previously invested $30 million into WLFI after Trump’s election. That money reportedly benefited Trump’s inner circle. The SEC later settled a fraud case with Tron, further complicating the narrative.

What Happens Next?

With the Department of Justice scaling back its crypto enforcement, and New York prosecutors easing pressure, the timing of this deal raises concerns. Some fear that large crypto investments into WLFI could act as a shield against future legal scrutiny.

As the DWF Labs Trump crypto deal moves forward, the industry will be watching for signs of financial misconduct or political misuse. Transparency and accountability will be critical if this partnership is to benefit—not harm—the broader crypto market.