On Tuesday evening, the X (formerly Twitter) accounts of two Trump family members were compromised to promote a fraudulent cryptocurrency scheme. The compromised accounts belonged to Lara Trump, a Republican National Committee co-chair and daughter-in-law of former President Donald Trump, and Tiffany Trump, Donald Trump’s youngest daughter. The fraudulent posts were aimed at promoting a digital currency project called World Liberty Financial.
The hacks occurred around 8:15 p.m. ET, with Lara Trump’s account erroneously announcing the launch of World Liberty Financial. This account posted links to a new cryptocurrency project, purportedly the “only official channels” for the venture. Tiffany Trump’s account quickly followed with an endorsement and additional links.
Details of the Scam
The website linked in these posts was created earlier on Tuesday and was registered via Njalla Okta LLC, an anonymous domain hosting service based in St. Kitts and Nevis. Njalla Okta is known for its association with dark-web activities, complicating efforts to trace the individuals behind the scam.
Shortly after the fraudulent posts, Eric Trump took to his own X account to denounce the scam and alert followers to the compromised accounts. He wrote, “This is a scam!!” and indicated that his wife’s and sister’s profiles had been hacked. However, all related posts, including Eric Trump’s warning, were deleted shortly after their appearance.
Campaign and Crypto Platform Context
The hacking incident occurs against the backdrop of former President Trump’s efforts to launch a cryptocurrency platform. This platform, named World Liberty Financial, is part of a broader initiative by Trump and his allies to align with the crypto community, which has become a significant donor base in the current election cycle.
Since June, there have been several digital tokens supposedly linked to Trump or his associates. One such token, DJT, shared its ticker symbol with Trump Media Technology Group’s Nasdaq listing. This coin attracted substantial investment but saw its value plummet after its founders withdrew the funds in early August.
The World Liberty Financial project was also set to make an announcement last week but missed its deadline. This incident has further complicated the Trump family’s foray into the cryptocurrency space.
Impact on Cryptocurrencies
The fraudulent posts had an immediate impact on the cryptocurrency market. The price of Solana, a cryptocurrency mentioned in the fake posts, dropped 9% before stabilizing around $126. The posts described a governance token on Solana to support the DeFi (Decentralized Finance) protocol World Liberty Financial. DeFi aims to replace traditional financial intermediaries with automated smart contracts.
Responses and Reactions
The Trump campaign and Trump Organization did not respond to inquiries regarding the hacks or the status of the crypto venture. Attempts to reach Eric Trump for comment via X were also unsuccessful.
This incident highlights the growing risks associated with cryptocurrency ventures, particularly those involving high-profile figures and new projects. The lack of regulatory oversight in the crypto space makes it a fertile ground for scams and frauds, exacerbating concerns about the credibility and security of such ventures.
Future Outlook
As the Trump family continues its efforts to establish a foothold in the cryptocurrency market, they will need to address both security concerns and investor skepticism. The hack underscores the challenges faced by new crypto projects in maintaining trust and credibility.
The Trump campaign’s connection with the crypto industry remains significant, given its role as a major source of donations this election cycle. However, the ongoing issues with crypto ventures and recent security breaches could affect investor confidence and the broader acceptance of Trump’s proposed crypto policies.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna Sahu holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.
