The ‘Crypto Punks’ Behind Trump’s Murky New Business Venture

The cryptocurrency venture recently unveiled by former President Donald J. Trump has stirred significant attention, not just because of Trump’s involvement but also due to the individuals spearheading the project. Chase Herro and Zachary Folkman, self-described serial entrepreneurs, bring with them a track record marked by lawsuits, unpaid debts, and tax liens. Despite their questionable pasts, the duo is now at the forefront of World Liberty Financial, a cryptocurrency platform Trump has dubbed a financial revolution.

Who Are Chase Herro and Zachary Folkman?

Chase Herro is a self-styled “internet dirtbag,” known for his ability to sell anything to anyone. Folkman, on the other hand, once ran a company called Date Hotter Girls, providing advice on picking up women. Both men have ventured into numerous businesses, leaving behind a legacy of financial and legal troubles. Their entrepreneurial escapades have ranged from e-commerce to social media marketing, often leading to lawsuits and unpaid taxes.

World Liberty Financial: Trump’s Bold Cryptocurrency Venture

In a live stream last month, Trump and his three sons announced World Liberty Financial, positioning it as a groundbreaking cryptocurrency project. Trump described the venture as a means to transform the U.S. into the “crypto capital of the world.” His eldest son, Donald Trump Jr., praised Herro and Folkman, stating they could outperform Wall Street executives in any financial boardroom.

However, many experts in the crypto space have raised red flags about the project. Eswar Prasad, a professor at Cornell University, expressed doubts about the technical expertise of Herro and Folkman, while John Reed Stark, a former Securities and Exchange Commission official, labeled the project as “nonsense” and warned investors of potential risks.

Potential Conflicts of Interest: Trump’s Personal and Political Intertwining

Trump’s involvement in World Liberty Financial highlights a broader pattern of blending his personal financial interests with his political aspirations. Throughout his campaign, he has sold branded merchandise ranging from silver coins to diamond-encrusted watches, all with his name or campaign imagery. If elected president again, Trump would hold significant sway over regulations that could impact the success or failure of the cryptocurrency industry, potentially creating a major conflict of interest.

Trump’s Changing Stance on Cryptocurrency

Trump’s position on cryptocurrency has shifted notably in recent years. In 2021, he dismissed crypto as a scam, aligning with the FBI’s warnings about widespread fraud. Yet, following discussions with his sons, who are strong proponents of digital assets, Trump’s views began to change. His renewed interest led to the formation of World Liberty Financial, which took shape earlier this year through connections with real estate developer Steve Witkoff, a close friend and political donor.

The Business Model of World Liberty Financial

The details of World Liberty Financial’s business model remain murky. The company’s promotional materials claim it will facilitate borrowing and lending in cryptocurrencies, but specifics are scarce. Interestingly, Barron Trump, Trump’s youngest son, is featured prominently in the materials, labeled as a “crypto visionary.” While neither Trump nor his family officially owns or manages the company, they may receive compensation from its success.

Herro and Folkman’s journey to cryptocurrency is marked by a litany of legal issues and financial disputes. Together, they have founded at least 17 companies, many based in tax havens such as the U.S. Virgin Islands and Puerto Rico. Their ventures, often centered around social media marketing and e-commerce, have frequently ended in lawsuits. In one notable case, Dough Finance, a crypto platform they were involved in, was hacked, resulting in the theft of $2 million.

A History of Controversy: Herro and Folkman’s Entrepreneurial Past

Herro’s personal life has also been troubled. He has faced legal issues stemming from theft and drug possession charges in his youth, financial woes such as car repossessions, and fraud allegations involving a marijuana dispensary he once co-owned. Despite these setbacks, Herro claims to have found success in social media marketing, boasting about his rapid rise to millionaire status.

From Social Media to Cryptocurrency

Herro and Folkman’s shift into cryptocurrency began years ago. Herro once ran a crypto trading firm, Pacer Capital, in the U.S. Virgin Islands, and both men have been vocal advocates of digital assets. In April 2022, Herro led a seminar on crypto at the home of Jordan Belfort, the infamous figure behind The Wolf of Wall Street. Despite endorsing cryptocurrencies like TerraUSD, which later collapsed, Herro remains undeterred in his promotion of digital assets.

World Liberty Financial’s Lofty Goals

Despite their past controversies, both Herro and Folkman have expressed ambitious plans for World Liberty Financial. Herro has described the project as a platform capable of restructuring trillions of dollars in national debt. Real estate developer Witkoff has also voiced confidence in the duo, likening their financial acumen to top currency traders.

Whether World Liberty Financial will deliver on its lofty promises remains uncertain, but Trump and his partners appear unwavering in their optimism.

The Future of Trump’s Cryptocurrency Project

As Donald Trump continues to navigate his political comeback, his foray into cryptocurrency raises numerous questions. With a history of controversies surrounding both his business partners and the high-risk industry of digital assets, the future of World Liberty Financial remains uncertain. While the project may attract investors drawn by Trump’s name, the potential for conflicts of interest and lack of transparency could pose significant challenges.

Will Trump’s crypto venture succeed, or is it another overhyped promise? Only time will tell, but the world is watching closely.