The legal counsel for former President Donald Trump’s new cryptocurrency venture, World Liberty Financial (WLFI), a new decentralized finance (DeFi) platform has been accused of trying to seize control of another digital asset company.
What Happened: Alex Golubitsky, the general counsel for World Liberty Financial, was previously fired from a different cryptocurrency company, Umami, in January 2023.
Following his dismissal, Golubitsky allegedly attempted to take over Umami, according to the company’s CEO, Alex O’Donnell, reported Business Insider, citing court documents.
Trump announced his association with World Liberty Financial on Monday, although his official role remains unclear.
He is listed as the “chief crypto advocate” in a company white paper. Three of Trump’s children, including his youngest son Barron Trump, are also linked to the venture.
After his dismissal from Umami, Golubitsky and another former employee reportedly appointed themselves to Umami’s board and tried to take the company’s intellectual property.
A Delaware vice chancellor ruled in O’Donnell’s favor last year and awarded O’Donnell over $375,000 in legal fees and costs, the report noted.
Other key employees of World Liberty Financial, including Chase Herro and Zachary Folkman, have also faced scrutiny for their professional pasts.
Their previous crypto venture, Dough Finance, was hacked this summer, resulting in the theft of over $2 million from users.
Why It Matters: Trump’s foray into the crypto space with World Liberty Financial was officially announced during a live X, formerly Twitter, Spaces event, marking his formal embrace of blockchain technology.
His interest in cryptocurrencies was largely influenced by the success of his NFT collection and the influence of his children, according to the former President.
The venture has already sparked concerns, with Ethereum co-founder Charles Hoskinson expressing reservations about the platform becoming a political issue.
The 2024 election outcome could also significantly impact Bitcoin’s price, with a Trump victory potentially propelling Bitcoin to new heights, according to a Bernstein report.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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