World Liberty Financial, the cryptocurrency investment platform backed by U.S. President Donald Trump, has seen its portfolio drop by $110 million in unrealized losses. 

According to data from Arkham Intelligence, WLFI’s investment of $336 million across nine cryptocurrencies is now worth approximately $226 million. Of the portfolio’s losses, Ethereum (ETH) is responsible for 65%.

Ethereum is trading at around $2,000 as at Mar. 10, meaning that WLFI, which bought it at an average price of $3,240,  is down an estimated $80.85 million, or almost 37% of its total investment.

Tron (TRX) has proven to be the most resilient of WLFI’s holdings, down just 5%. The portfolio’s other holdings, which have all contributed to the WLFI’s losses, include tokens such as stETH ($10.27M), WHITE ($5.87M), Movement (MOVE) ($3.5M), and Ondo (ONDO) ($296,000).

Despite these losses, WLFI continues to boost its portfolio and expand its network. On Mar. 6, WLFI acquired $21.5 million worth of Ethereum, Wrapped Bitcoin (WBTC) and Movement Network tokens. In addition, the company recently partnered with Sui (SUI), a blockchain founded by former Meta programmers, to explore decentralized finance opportunities.

The partnership has drawn speculations as some believe it is an attempt to expand into other blockchain ecosystems, while others wonder what the real reasons for the partnership are.

Founded in 2024, WLFI has managed to position itself as a major player in DeFi. Trump, along with his close family and allies, controls more than 60% of the project. Despite recent losses, WLFI attracted strong investor interest, raising $300 million during its January 2025 token sale.

Meanwhile, as Trump’s government works to establish a strategic crypto reserve for the United States, critics argue that his growing influence in the cryptocurrency markets may lead to conflicts of interest.

The Trump Organization has denied any wrongdoing, claiming that his children, an outside ethics lawyer, and an independent investment firm run WLFI and that Trump has no direct control over its activities.

Web3 security firm GoPlus Security has launched an investigation after its token dropped 60% in a single day, noting that it wasn’t informed about the the listing beforehand.

GoPlus Security (GPS), a web3 firm that says it’s working on the “first decentralized security layer,” is investigation a steep price fall of its native GPS token, which suddenly lost over 65% of its value following listing on cryptocurrency exchange Binance.

In an X thread on March 7, the firm denied rumors of insider dumping, adding that it wasn’t informed in advance about the listing, which took place on March 4. According to GoPlus Security, the team only learned about the listing when the public announcement was made. In response to the price drop, which saw the token’s value plunge by more than half within 24 hours, the firm has formed an investigation team to explore the cause of the fluctuations.

“Everything happened rapidly, and our team only learned about the listing when the public announcement was made, after which we immediately worked to cooperate with Binance to facilitate any additional requirements on our side.”

GoPlus Security

GoPlus Security’s native token, GPS, is designed to be a utility token, enabling users to receive incentives for safeguarding the network by staking GPS to run security nodes or provide security data, as crypto.news explained earlier.

In addition to launching its investigation, GoPlus Security also revealed that on the day of the listing, it transferred 500 million GPS tokens to Binance, 300 million of which have already been distributed as rewards for Binance’s BNB HODLer program. The remaining 200 million tokens will be used for future marketing efforts, the firm said.

Following the price drop, Binance said it would extend the monitoring tag to include GPS due to a “significant price drop immediately following the spot listing and certain market making behavior of one of GPS’ market makers.”

GoPlus Security assured the public that it’s investigating the issue with Binance and will provide further updates as more information becomes available. As of press time, GPS is trading at $0.061, per data from crypto price aggregators.

Between the holidays and New Years, the IRS used the last passing days of the Biden administration to finalize its long feared Broker Rule: a regulation requiring all cryptocurrency exchanges – custodial and non-custodial, fiat to crypto and crypto to crypto – to effectively subject their users to Know-Your-Customer (KYC) measures.

The rule establishes that custody over funds is not necessary to be deemed a broker by the IRS, obliging “DeFi front-end services” to report trading activity via the 1099 tax form to the agency. This includes any developer of “screens, buttons, forms, and other visual elements incorporated in websites, mobile device apps, and browser extensions—that users can use to trade digital assets in their unhosted wallets”. 

With its broker rule, the IRS deems said developers to have a certain amount of “control” over the offered services, despite never taking custody of coins and the lack of ability to influence the underlying protocols – the rule is in line with digital asset guidance from the Financial Action Task Force (FATF), which deems developers of user interfaces to qualify as Virtual Asset Service Providers subject to anti-money laundering and countering the financing of terrorism obligations. 

Similar to FATF, the broker rule defines control as “the ability to amend, update, or otherwise substantively affect the terms under which the services are provided,” as well as “the ability to collect the fees charged for those services from the transaction flow […] whether or not the person actually collects fees in this manner,” and/or if that person has the ability “to add to the order a sequence of instructions to query the cryptographically secured distributed ledger to determine if the processed order is, in fact, executed or to use another method of confirmation based on information known to that person as a result of providing the trading front-end services.”

In light of such enormous overreach – control over funds has been widely understood as a prerequisite to be regulated as a financial service according to FinCEN guidance – the industry moved quickly. A day after publication of the rule, the Blockchain Association filed a lawsuit against the IRS and the Treasury Department, asking federal judges to strike the rule down before it takes effect, alleging that the rule is unconstitutional and contrary to existing federal laws. 

In addition to the suit, Senator Ted Cruz introduced a joint resolution to disapprove of the IRS’ rule by Congressional power, co-sponsored by Senator Cynthia Lummis, Senator Bill Hagerty, Senator Mike Lee, and Senator Tim Scott, among others.

 “This regulation undermines the purpose of DeFi technology: to enable individuals to freely buy, sell, and exchange digital assets,” Cruz said in a press release regarding the resolution. Representative Corey, who introduced the resolution together with Cruz, called the rule a “clear overreach”. 

The resolution was voted on yesterday in the Senate, with overwhelming support of 70 to 27 in favor, and will now move for a vote in the House.

The broker rule is another effort of the Biden administration to extend control over non-custodial services. In both the criminal prosecution of Samourai Developers, as well as the criminal prosecution of Tornado Cash developers, the US Department of Justice is alleging that control over funds is not necessary to be held liable as a money service business under US law, arguing that the development of user interfaces and other features demonstrate enough control over a service to be subjected to sanctions, anti-money laundering and countering the financing of terrorism regulations.

While the possible overturning of the broker rule would no doubt be a success, the sentencing of Samourai and Tornado Cash developers would yield similar results regarding reporting requirements for non-custodial service providers.

To clarify that non-custodial service providers are exempt from being classified as money service businesses, the Blockchain Regulatory Certainty Act by Representative Tom Emmer has been introduced to Congress, offering widespread protections for developers.

This is a guest post by L0la L33tz. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.