WLFI-linked AI Financial flags ‘going concern’ as losses mount

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Written by Jesse Coghlan⁠, Staff Editor. Reviewed by Felix Ng⁠, Staff Editor.

Written by Jesse Coghlan⁠, Staff Editor.

Reviewed by Felix Ng⁠, Staff Editor.

WLFI-linked AI Financial flags ‘going concern’ as losses mount

Latest NewsPublishedMay 20, 2026

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AI Financial was one of the many companies swept up in the craze of crypto-buying public firms, becoming a buyer of World Liberty Financial (WLFI), the token of the Trump family-backed crypto platform of the same name.

To meet its obligations, AI Financial said it held 7.3 billion WLFI tokens at a value of $703.4 million as of March 28, which it could use to firm up its liquidity.

However, the value of AI Financial’s WLFI holdings has fallen by a third since late December, when the fair value of the tokens was at over $1 billion, leading to an unrealized loss of $348.3 million. The company paid nearly $1.46 billion to acquire its WLFI holdings.

AI Financial added that it also borrowed nearly $15 million from World Liberty in January, drawing down the cash under a loan agreement with the Trump-linked firm, which it said it could use in a share repurchase program and to buy more WLFI tokens.

Shares in AI Financial (AIFC) ended trading down nearly 6.3% on Tuesday at 85 cents, extending its 10% drawdown over trading on Monday.

Source: Google Finance

Related: Trump-backed Truth Social pulls bids for crypto ETFs

The company’s stock has fallen by nearly 87.5% over the past 12 months. It first looked to become a WLFI treasury company in early August after closing a $1.5 billion direct offering and private placement led by World Liberty Financial.

At the time of the deal closing, Witkoff became AI Financial’s chairman, while World Liberty co-founder Zak Folkman became a board observer.

US President Donald Trump’s son, Eric Trump, joined the company’s board, but was quietly removed from the leadership section of its website late last month. 

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

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