Trump-Backed DeFi Firm Suffers $110M Loss Due To Ethereum Decline

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📈 Preview On Today’s News:

1. - Trump-Backed DeFi Firm Suffers $110M Loss Due To Ethereum Decline

2. - California Shuts Down 26 Fraudulent Crypto Platforms in $4.6M Scam Crackdown

3. - U.S. House Overturns IRS Rule Targeting DeFi Platforms

Keep reading below for more!

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Today’s News:

1)

Trump-Backed DeFi Firm Suffers $110M Loss Due To Ethereum Decline

World Liberty Financial, a decentralized finance (DeFi) firm backed by Donald Trump, has reported a $110 million loss in its cryptocurrency portfolio, according to data from Arkham. Ethereum accounted for 65% of the loss, contributing significantly to the portfolio’s decline, which now stands at $336 million and includes investments in nine different cryptocurrencies. Despite this setback, Trump Media announced plans to expand its cryptocurrency initiatives through its Truth.Fi brand, with an additional $250 million investment in Bitcoin and similar assets.

• World Liberty Financial, backed by Donald Trump, reported a $110 million loss in its crypto portfolio, with Ethereum responsible for 65% of the decline.

• Despite the losses, Trump Media plans to invest up to $250 million more in Bitcoin and other digital assets under its Truth.Fi brand.

2)

California Shuts Down 26 Fraudulent Crypto Platforms in $4.6M Scam Crackdown

The California Department of Financial Protection and Innovation (DFPI) has taken action against cryptocurrency fraud by shutting down 26 scam websites that collectively defrauded consumers of $4.6 million. The operation reviewed over 2,600 complaints and uncovered schemes involving fake Bitcoin mining operations, misleading gaming sites offering false rewards, and fraudulent job offers. Officials identified seven new types of scams, underscoring the evolving nature of crypto fraud. DFPI’s “Crypto Scam Tracker” tool was instrumental in tracing scammers’ activities. Authorities urge consumers to be cautious with unknown platforms and report suspicious activity, with further enforcement actions planned.

• California’s DFPI shut down 26 fraudulent crypto sites that caused $4.6 million in losses, identifying seven new types of scams in the process.

• Officials warn of increasingly complex fraud tactics and encourage consumers to report suspicious platforms as enforcement efforts continue.

3)

U.S. House Overturns IRS Rule Targeting DeFi Platforms

The U.S. House of Representatives voted 292-132 to overturn an IRS regulation that would have required decentralized finance (DeFi) platforms to collect and report taxpayer information. The bipartisan resolution, supported by 76 Democrats, argued the rule was unworkable, as DeFi protocols lack the technical ability to gather such data. Introduced by Representative Mike Carey, the resolution now returns to the Senate before heading to President Trump, who is expected to sign it into law. If enacted, the Congressional Review Act would block the IRS from issuing similar rules in the future without direct Congressional approval.

• The U.S. House voted 292-132 to overturn an IRS rule requiring DeFi platforms to report user tax information, citing technical infeasibility and overreach.

• The bipartisan resolution now awaits a second Senate vote and President Trump’s approval, potentially barring future similar IRS regulations without Congress’s consent.

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