According to a recent Forbes piece, the pro-crypto US president, Donald Trump, has suffered a staggering financial loss due to the recent crypto market declines. All in all, Trump’s net worth has shrunk by roughly $1.1 billion. Particularly, tremendous losses have been faced by Trump Media & Technology Group, whose share price experienced a sharp drop.
Meanwhile, the crypto market continues to move through the massive correction and bloodbath, where billions of dollars worth of crypto positions are being liquidated weekly. Aside from the recent geopolitical turmoil around the US-Venezuela relations, another negative trigger for the crypto market has emerged – Binance has faced accusations of helping to finance terrorist groups in the Middle East.
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Market crash wipes out Trump’s recent gains in media and crypto businesses
Donald Trump’s net worth has suffered dramatically over the past three months as both the crypto and stock markets have been confronting one of their most severe periods in history since the last major correction. Since September, Trump has lost $1.1 billion, with his net worth going down from $7.3 billion three months ago to around $6.2 billion now, the Forbes data says.
This decline in his fortune was caused by the massive plunge in shares of Trump Media & Technology Group, which he owns, and a wider decline of the crypto sector, where Trump’s other company has been involved since last year – the crypto fund World Liberty Financial. It secured a lavish investment of $75 million from the crypto billionaire and Tron founder Justin Sun and has its native token, WLFI. Prior to the market crash, Trump’s cryptocurrency fund drove his wealth to new highs. However, that success has now reversed, and the fragile crypto wave that powered the fund’s profits has gone back down.
The crypto market was shaken by Bitcoin’s recent price collapses. The hardest one took place last week when the flagship cryptocurrency nosedived below the $90,000 level a few times and is currently changing hands at the $86,800 range. This negative reaction was likely triggered by Trump’s threats to initiate a military operation in Venezuela to stop the inflow of drugs and immigrants from this country to the USA, as well as to stop the potential disruption in global oil markets. This potential military conflict has sent ripples through financial markets, driving investors to close their leveraged positions, wiping out billions of US dollars from the market, and to sell off stocks and Bitcoin. The decline of BTC has been followed by the crash of altcoins, including the biggest one, Ethereum.
New lawsuit targets Binance and CZ
The overall market downturn has coincided with a new round of legal pressure against a major crypto player – the Binance exchange. In a striking recent development, Binance and its former CEO, Changpeng Zhao (often known as CZ), have been accused of helping to provide financial support to terrorist and extremist organizations in the Middle East – Hamas and Hezbollah.
A group of Israeli citizens who suffered from the infamous Hamas attack on 7 October 2023 has filed a lawsuit against Binance, claiming that the platform helped to transfer tens of millions of dollars to the aforementioned terrorist groups. According to the suit, CZ designed Binance “as a criminal enterprise to facilitate money laundering on a global scale.” The document also alleges that Binance helped transfer a total of $50 million to Hamas, the IRGC, Hezbollah, and PIJ on public blockchains. The lawsuit does not accuse CZ directly, but CNBC calls him one of the defendants in this legal case.
This unfortunate development comes just after Donald Trump recently issued a pardon to Zhao, who admitted to charges of money laundering while occupying the position of the Binance CEO. In 2024, CZ also spent four months behind bars in a federal US prison as part of the court sentence. He also had to step down from his CEO position for life.
Trump ends 2025 with crypto market deteriorating
Overall, the situation in the crypto market is now drastically different from the favorable one in January, when Donald Trump took the Oval Office, sending Bitcoin to a new all-time high.
While he reformed the SEC, removing the regulator’s anti-crypto sentiment and signed an executive order to establish the Strategic Bitcoin Reserve, after several new historic price peaks, Bitcoin lost almost half of its value after surpassing the $120,000 threshold earlier this year.
Curiously, Trump’s geopolitical announcement and decisions have been largely devastating not only the financial markets, including the cryptocurrency one, but also have made his own multi-billion-dollar wealth shrink. Still, many experts remain optimistic, expecting Bitcoin to soar to at least $200,000 – $250,000 next year, including Tim Draper and Robert Kiyosaki.
