WuBlockchain
AI Financial, formerly Alt5 Sigma, is in talks to sell its core payments business to Tokyo-based blockchain company Perpetuals.com for up to $15 million, the Wall Street Journal reported. The company had come under the control of the Trump family's crypto project World Liberty Financial through WLFI tokens, then raised $750 million to buy more WLFI.
Why it matters
A sale at $15 million would be a fraction of what the payments business was worth before the WLFI transactions. AI Financial is now attempting to raise fresh equity to fund further WLFI purchases, even as its own shares have lost more than 90% of their value. The Wall Street Journal also reported that the Trump family is contractually entitled to 75% of proceeds from WLFI token sales, and that AI Financial's WLFI purchases generated around $540 million in cash for Trump-related entities. The arrangement has drawn separate scrutiny over allegations that figures tied to the deal concealed proceeds from public-office holders.
Market impact
WLFI fell roughly 70% from its post-launch high, while AI Financial's market cap compressed to about $80 million. The proposed unwind crystallizes losses for shareholders who bought in around the time of the $750 million raise, and reinforces a widening gap between token-sale economics and the equity holders left holding the bag.
Frequently asked questions
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What is AI Financial and how is it connected to the Trump family?
AI Financial, formerly Alt5 Sigma, came under the control of the Trump family's World Liberty Financial crypto project via WLFI tokens and later raised $750 million to buy more WLFI.
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How much is AI Financial trying to sell its payments unit for?
Up to $15 million, in a proposed sale to Tokyo-based blockchain company Perpetuals.com, according to the Wall Street Journal.
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How much of WLFI sale proceeds go to the Trump family?
The Wall Street Journal reports the Trump family is contractually entitled to 75% of proceeds from WLFI token sales, with AI Financial's WLFI purchases generating about $540 million in cash for Trump-related entities.
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How have WLFI and AI Financial shares performed?
WLFI is down roughly 70% from its post-launch high, and AI Financial's shares have lost more than 90%, leaving its market capitalization near $80 million.
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What other scrutiny does the deal face?
Separate reporting has raised questions over whether proceeds linked to the arrangement were concealed from public-office financial disclosure rules, on top of the market losses.
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