His cryptocurrency company meanwhile launches “strategic token reserve” amid suspicions of market manipulation.

Donald Trump's latest foray into cryptocurrency has left many of his supporters with staggering losses. While a handful of early investors cashed out with massive gains, the vast majority — over 810,000 wallets — saw their money disappear after the $Trump meme coin crashed.

According to a New York Times investigation, those unlucky investors collectively lost more than $2 billion. Meanwhile, just under 700,000 managed to walk away with some profit, totaling $6.6 billion. However, a significant portion — about $699 million — was pocketed by just 31 early buyers.

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As is often the case, the house won. Chainalysis data cited by NYT reveals that Trump’s family and business partners raked in nearly $100 million in trading fees alone. Today, the $Trump coin hovers around $15 — far from its peak of $75.

Insider trading allegations

Trump has previously dabbled in crypto, including his struggling stablecoin project World Liberty Financial (WLF). But this marks the first time he and his family have directly marketed a cryptocurrency. Trump actively promoted $Trump on his personal X account, driving speculation and investment.

More troubling, blockchain records suggest possible insider trading. The token was created on 17 January, just days before Trump's inauguration. However, he didn’t publicly announce it until 12 hours later. The biggest winner bought $1.1 million worth of tokens at just 18 cents and cashed out two days later with as much as $109 million.

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That investor's wallet was created only three hours before Trump’s announcement — a suspiciously well-timed move, the report says.

Political and regulatory concerns

Trump’s aggressive push into crypto comes as he signals plans to deregulate the blockchain industry, aiming to make the U.S. the "crypto capital of the planet." He has reportedly instructed the Securities and Exchange Commission (SEC) to relax enforcement, while his ally Elon Musk has floated the idea of putting the U.S. Treasury on the blockchain.

“The president is participating in shady crypto schemes that harm investors while appointing regulators who will roll back protections,” Corey Frayer, former crypto adviser to the SEC, told NYT.

With billions lost and serious concerns about insider trading, Trump’s crypto dealings are raising red flags — not just for investors but for financial watchdogs as well.

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Neither the SEC nor other financial enforcement institutions have responded to the investigation.

Meanwhile the WLF crypto platform in which President Donald Trump holds a financial stake has announced the creation of a strategic token reserve aimed at supporting Bitcoin, Ethereum, and other leading cryptocurrencies.

Relaxing crypto oversight

In a statement posted on X on 12 February, WLF said the reserve would help stabilize market volatility, fund innovative decentralized finance projects, and establish a well-capitalized asset pool. The company also indicated plans to form strategic partnerships with financial institutions to contribute tokenized assets to its reserve.

The move is a clear indication that Trump and his family deepen their involvement in the cryptocurrency industry. In addition to WLF, their holdings include a majority stake in Trump Media & Technology Group, which announced in January a pivot into crypto-linked financial services.

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While in office, Trump has placed his assets in a revocable trust, managed by his children. WLF launched just two months before the U.S. presidential election, with Trump and his affiliates controlling a 60% stake in its holding company. They are entitled to 75% of its revenues and 22.5 billion tokens, per the company’s website.

With Trump’s crypto empire rapidly expanding — and regulatory oversight potentially shifting — his financial entanglements in the industry are drawing increasing scrutiny, according to former officials.

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