Trump-Linked Crypto Company Notes ‘Substantial Doubt’ It Can Survive Another 12 Months
In a recent SEC filing, AI Financial has indicated that it may not be able to survive another year writing, “These conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date these financial statements are issued.”
AI Financial is a publicly-traded company that serves as a major holder of World Liberty Financial’s WLFI tokens. In its quarterly report for the period that ended March 28th, the company posted a net loss from continuing operations of $271.3 million during the quarter, driven largely by a $348.3 million unrealized loss on its massive WLFI token holdings. The company reported only $4.7 million in revenue for the quarter (all from its fintech segment), and it ended the period with $10.5 million in cash and a $5.5 million working-capital deficit, while burning $12.3 million in operating cash flow.
However, management did also outline several potential paths to stabilize the business in their recent filing. The company had already secured a $15 million loan from World Liberty Financial in late January, providing some short-term breathing room. More importantly, it controls approximately 7.28 billion WLFI tokens, which were valued at about $706 million on the balance sheet at quarter end. Those tokens were acquired in August 2025 and remain subject to contractual lock-up provisions until around August 2026. Once unlocked, the company hopes to monetize portions of the position to cover operating needs, alongside plans for fintech revenue growth and possible additional debt or equity raises.
Trump says he knows nothing about the $500M Abu Dhabi investment in his family’s WLFI crypto project.
“I don’t know about it… my family is handling it.” pic.twitter.com/sBEfXO1FCK
— TFTC (@TFTC21) February 2, 2026
The ties between AI Financial and World Liberty Financial run deep. Zachary Witkoff serves as chairman of AI Financial while also acting as CEO and co-founder of World Liberty Financial. Board member Zachary Folkman is another World Liberty Financial co-founder. World Liberty Financial itself holds a substantial stake in AI Financial, including 1 million common shares plus warrants and pre-funded warrants that together represent roughly 46% ownership on a fully diluted basis. Notably, World Liberty Financial is a Trump family project. Donald Trump is listed as co-founder emeritus and chief crypto advocate. His sons Eric Trump, Donald Trump Jr., and Barron Trump are co-founders and actively participate in the venture.
In practice, AI Financial functions as a treasury company for the WLFI token. The strategy mirrors what Michael Saylor has pursued at Strategy with bitcoin, where the public company accumulates and holds the asset as its primary reserve. In AI Financial’s case, the reserve asset is the much newer WLFI token. Critics have occasionally labeled the Strategy approach as resembling a Ponzi scheme because it depends on continued capital raises and asset appreciation to sustain operations. Applying a similar model to WLFI introduces additional layers of risk given the token’s shorter history, higher volatility, and dependence on the success of a single Trump-affiliated crypto project.
Although crypto-related projects reportedly increased the Trump family fortune by $1.4 billion in 2025 alone, a number of these Trump-linked projects have faced trouble this year. Most recently, World Liberty Financial filed a defamation lawsuit against crypto billionaire Justin Sun in Florida after Sun accused the project of improperly freezing his token holdings and pressuring him for further investments. Sun had previously purchased billions of WLFI tokens and served in an advisory role.
The perceived corruption associated with the CZ pardon will look even worse if the Samourai Wallet devs aren’t pardoned for similar charges.
How much of World Liberty Financial’s USD1 stablecoin does one need to hold to receive a pardon? https://t.co/UwFQgJwhVc
— Kyle Torpey (@kyletorpey) November 20, 2025
According to data from CoinMarketCap, the TRUMP memecoin is down 84% over the past year and World Liberty Financial’s WLFI token is down 73%.
Going forward, a key area of concern for many Trump-affiliated crypto businesses will likely be the potential inclusion of ethics or corruption-related provisions in the crypto regulatory bill known as the CLARITY Act, which is currently making its way through the U.S. Senate. The legislation advanced out of the Senate Banking Committee on a 15-9 vote in mid-May 2026, but several Democrats have signaled they will block final passage unless it includes stronger language that would restrict the president, vice president, and their families from certain digital asset transactions.
Much of the investment into these projects has drawn scrutiny over alleged conflicts of interest, including the pardon granted to former Binance CEO Changpeng Zhao, the administration’s approval of hundreds of thousands of advanced Nvidia AI chips for the United Arab Emirates shortly after a UAE royal invested $500 million in World Liberty Financial, and the aforementioned Sun’s ability to settle a prior SEC enforcement case after pouring an estimated $175 million into Trump-linked crypto tokens.
#TrumpLinked #Crypto #Company #Notes #Substantial #Doubt #Survive #MonthsCryptocurrencies,Donald Trump,World Liberty Financial
In a recent SEC filing, AI Financial has indicated that it may not be able to survive another year writing, “These conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date these financial statements are issued.”
AI Financial is a publicly-traded company that serves as a major holder of World Liberty Financial’s WLFI tokens. In its quarterly report for the period that ended March 28th, the company posted a net loss from continuing operations of $271.3 million during the quarter, driven largely by a $348.3 million unrealized loss on its massive WLFI token holdings. The company reported only $4.7 million in revenue for the quarter (all from its fintech segment), and it ended the period with $10.5 million in cash and a $5.5 million working-capital deficit, while burning $12.3 million in operating cash flow.
However, management did also outline several potential paths to stabilize the business in their recent filing. The company had already secured a $15 million loan from World Liberty Financial in late January, providing some short-term breathing room. More importantly, it controls approximately 7.28 billion WLFI tokens, which were valued at about $706 million on the balance sheet at quarter end. Those tokens were acquired in August 2025 and remain subject to contractual lock-up provisions until around August 2026. Once unlocked, the company hopes to monetize portions of the position to cover operating needs, alongside plans for fintech revenue growth and possible additional debt or equity raises.
Trump says he knows nothing about the $500M Abu Dhabi investment in his family’s WLFI crypto project.
“I don’t know about it… my family is handling it.” pic.twitter.com/sBEfXO1FCK
— TFTC (@TFTC21) February 2, 2026
The ties between AI Financial and World Liberty Financial run deep. Zachary Witkoff serves as chairman of AI Financial while also acting as CEO and co-founder of World Liberty Financial. Board member Zachary Folkman is another World Liberty Financial co-founder. World Liberty Financial itself holds a substantial stake in AI Financial, including 1 million common shares plus warrants and pre-funded warrants that together represent roughly 46% ownership on a fully diluted basis. Notably, World Liberty Financial is a Trump family project. Donald Trump is listed as co-founder emeritus and chief crypto advocate. His sons Eric Trump, Donald Trump Jr., and Barron Trump are co-founders and actively participate in the venture.
In practice, AI Financial functions as a treasury company for the WLFI token. The strategy mirrors what Michael Saylor has pursued at Strategy with bitcoin, where the public company accumulates and holds the asset as its primary reserve. In AI Financial’s case, the reserve asset is the much newer WLFI token. Critics have occasionally labeled the Strategy approach as resembling a Ponzi scheme because it depends on continued capital raises and asset appreciation to sustain operations. Applying a similar model to WLFI introduces additional layers of risk given the token’s shorter history, higher volatility, and dependence on the success of a single Trump-affiliated crypto project.
Although crypto-related projects reportedly increased the Trump family fortune by $1.4 billion in 2025 alone, a number of these Trump-linked projects have faced trouble this year. Most recently, World Liberty Financial filed a defamation lawsuit against crypto billionaire Justin Sun in Florida after Sun accused the project of improperly freezing his token holdings and pressuring him for further investments. Sun had previously purchased billions of WLFI tokens and served in an advisory role.
The perceived corruption associated with the CZ pardon will look even worse if the Samourai Wallet devs aren’t pardoned for similar charges.
How much of World Liberty Financial’s USD1 stablecoin does one need to hold to receive a pardon? https://t.co/UwFQgJwhVc
— Kyle Torpey (@kyletorpey) November 20, 2025
According to data from CoinMarketCap, the TRUMP memecoin is down 84% over the past year and World Liberty Financial’s WLFI token is down 73%.
Going forward, a key area of concern for many Trump-affiliated crypto businesses will likely be the potential inclusion of ethics or corruption-related provisions in the crypto regulatory bill known as the CLARITY Act, which is currently making its way through the U.S. Senate. The legislation advanced out of the Senate Banking Committee on a 15-9 vote in mid-May 2026, but several Democrats have signaled they will block final passage unless it includes stronger language that would restrict the president, vice president, and their families from certain digital asset transactions.
Much of the investment into these projects has drawn scrutiny over alleged conflicts of interest, including the pardon granted to former Binance CEO Changpeng Zhao, the administration’s approval of hundreds of thousands of advanced Nvidia AI chips for the United Arab Emirates shortly after a UAE royal invested $500 million in World Liberty Financial, and the aforementioned Sun’s ability to settle a prior SEC enforcement case after pouring an estimated $175 million into Trump-linked crypto tokens.
![This former notorious red-light district is now one of the world’s top AI hubs | TechCrunch
What every U.K. AI startup wants to know these days is, how can I get office space in King’s Cross?
The area is so hot that a VC firm allegedly recently won a deal by promising a founder office space in the neighborhood. “We stop at nothing to win deals [for] and to support” founders, “including helping them source office space when needed,” the firm told me when asked about the rumor, declining to confirm or deny any details.
The neighborhood’s popularity began back in 2016 when DeepMind — then newly acquired by Google — moved in. Soon after, a flood of AI startups followed, wanting to be around the Google DeepMind magic. Today, they hope to take advantage of the cluster of AI talent there.
This has transformed King’s Cross into one of the world’s top AI hubs, rivaled only by San Francisco and Beijing. Around London, it’s known by the sobriquet “Knowledge Quarter,” as it’s home to names like OpenAI, Meta, Isomorphic Labs, Cusp AI, Wayne, Recursive, and, a little farther down the road, Synthesia and Anthropic. The European Technology Network (ETN) just moved into a glossy new office nearby, while University College London sits around the corner.
Mixed in with the new developments are trendy food spots like Hoppers and BAO. Hop a train from King’s Cross, and founders can be in Cambridge in 45 minutes to source talent or can be in Paris in two hours to strike a deal.
Who would have guessed that a little more than 20 years ago, this was one of the seediest areas in London?
“In the ’80s, crack and heroin made the area a major narcotics market,” Hussein Kanji, an investor at Hoxton Ventures, said, recalling syringes in tree trunks and gangs patrolling the streets. “In 1982, the local church was occupied by the English Collective of Prostitutes for 12 straight days.” Then, in the early 2000s, a real estate developer had a dream and, well, “now it is the AI hotbed of the United Kingdom,” Kanji said. “What a change.” Around 18 months ago, his portfolio company BioCorteX moved from the neighborhood Holborn to the Jellicoe building in King’s Cross, hoping to be near the action. “Lots going on in London right now,” Nik Sharma, co-founder of BioCorteX, told me. “Lots of hyperscalers moving in.” That includes, reportedly, Jeff Bezos’ AI company Prometheus, which is also said to be in talks to move into the Jellicoe.
There are around 3,600 AI startups in London, which, together, have raised around .1 billion out of the .8 billion raised in the city since late July, according to Dealroom. Since the start of June, AI-related startups have leased more than 1 million square feet of office space in London, according to the real estate firm Knight Frank. With that, prime rents in King’s Cross have risen 18% over the past three years, Chris Dunn, a commercial insight associate at the firm, told me. That percentage represents only the largest leases encompassing at least 10,000 square feet, like the ones OpenAI and Prometheus are signing. The shorter deals go for even more, he said, and now the vacancy rate for conventional office space is just 0.9%. “Demand has outstripped supply,” he continued.
Today, one of the big topics of the area is sovereignty. It was a wake-up call for many when Anthropic shut off access to Mythos and Fable this summer, leaving some in the ecosystem to conclude: “We’d better look after ourselves,” Saul Klein, co-founder of the VC firm Phoenix Court, told me.
Phoenix Court is located in the King’s Cross area and has three portfolio companies in the vicinity, including Olix (which just announced a .3 billion valuation), Early Health and CoMind. Robin Klein, co-founder of the firm, said the shutdown of Fable and Mythos access was a “small but sharp reminder that Europe can’t simply rent its AI capabilities and capacity; it needs to build and hold some of its own.” King’s Cross, he said, is where much of this building is actually happening.
“The bigger question,” he continued, “is whether the U.K. builds the infrastructure, compute, energy, capital, to make this self-reliance durable, rather than just hosting outposts of U.S. labs.”
Image Credits:Phoenix Court
Top founders want to stay
Simon Kohl, founder of Latent Labs, has offices in King’s Cross and San Francisco. The London office, at the moment, is growing faster, and he’s more bullish than ever on the ecosystem, he said. “The mood right now feels less like London trying to catch up and more like London becoming one of the default places to start a serious AI company,” he said. Look around and you are likely to see Wayve testing its autonomous cars. Founded in 2017 by co-founder Alex Kendall, the unicorn is one of London’s biggest success stories.
“Ten years ago, building a frontier AI company from London felt like an unusual choice,” Kendall told me. “Now it feels like an obvious one.” Wayve moved into King’s Cross in 2018 looking for a space that could double as a garage — “a rare combination in Central London,” Kendall said. He has watched the ecosystem mature around him — and it’s now evident that a startup can stay in London, raise serious capital, hire world-class AI talent, and remain globally competitive, he said. Down the street from Anthropic’s new 158,000-square-foot office is the AI agent builder Sierra and the AI video platform Synthesia.
Laura Gonzalez Florez, Synthesia’s chief of staff and head of people, says the company moved into its glossy new office building a year ago to accommodate its growing team. They were drawn to the area for the same reason as everyone else: “It’s very close to the airport … very close to where a lot of investors are,” she said.
Image Credits:Synthesia
Around two-thirds of Synthesia’s engineers are remote, Gonzalez Florez said, letting the company tap into an affordable, international, and diverse talent pool and helping it scale faster. “From London, we can hire and work, without any problem, people from anywhere, from Slovenia to Portugal,” she said.
Unsurprisingly, London’s AI boom is also causing a talent war.U.K. AI job postings have skyrocketed in the past few years, per data from PwC. When Anthropic announced it moved into town earlier this year, it listed, for example, a salary range of £260,000 to £630,000 for a machine learning research engineer when the average salary in London for the same role is around £102,000. Some founders in the U.K., like those in Silicon Valley, are being forced to raise more and bigger rounds to keep up.
“The real test is whether more globally significant AI companies are founded, funded, and scaled from the U.K., while continuing to attract the world’s best talent to build them here,” Zain Ali, founder of the King’s Cross-based AI legal firm Centuro, told me. “If that continues to happen, King’s Cross won’t just be an AI hub. It’ll become one of the U.K.’s most important strategic assets.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#Thisformernotorious #redlight #districtis #nowone #worlds #top #hubs #TechCrunchUK This former notorious red-light district is now one of the world’s top AI hubs | TechCrunch
What every U.K. AI startup wants to know these days is, how can I get office space in King’s Cross?
The area is so hot that a VC firm allegedly recently won a deal by promising a founder office space in the neighborhood. “We stop at nothing to win deals [for] and to support” founders, “including helping them source office space when needed,” the firm told me when asked about the rumor, declining to confirm or deny any details.
The neighborhood’s popularity began back in 2016 when DeepMind — then newly acquired by Google — moved in. Soon after, a flood of AI startups followed, wanting to be around the Google DeepMind magic. Today, they hope to take advantage of the cluster of AI talent there.
This has transformed King’s Cross into one of the world’s top AI hubs, rivaled only by San Francisco and Beijing. Around London, it’s known by the sobriquet “Knowledge Quarter,” as it’s home to names like OpenAI, Meta, Isomorphic Labs, Cusp AI, Wayne, Recursive, and, a little farther down the road, Synthesia and Anthropic. The European Technology Network (ETN) just moved into a glossy new office nearby, while University College London sits around the corner.
Mixed in with the new developments are trendy food spots like Hoppers and BAO. Hop a train from King’s Cross, and founders can be in Cambridge in 45 minutes to source talent or can be in Paris in two hours to strike a deal.
Who would have guessed that a little more than 20 years ago, this was one of the seediest areas in London?
“In the ’80s, crack and heroin made the area a major narcotics market,” Hussein Kanji, an investor at Hoxton Ventures, said, recalling syringes in tree trunks and gangs patrolling the streets. “In 1982, the local church was occupied by the English Collective of Prostitutes for 12 straight days.” Then, in the early 2000s, a real estate developer had a dream and, well, “now it is the AI hotbed of the United Kingdom,” Kanji said. “What a change.” Around 18 months ago, his portfolio company BioCorteX moved from the neighborhood Holborn to the Jellicoe building in King’s Cross, hoping to be near the action. “Lots going on in London right now,” Nik Sharma, co-founder of BioCorteX, told me. “Lots of hyperscalers moving in.” That includes, reportedly, Jeff Bezos’ AI company Prometheus, which is also said to be in talks to move into the Jellicoe.
There are around 3,600 AI startups in London, which, together, have raised around .1 billion out of the .8 billion raised in the city since late July, according to Dealroom. Since the start of June, AI-related startups have leased more than 1 million square feet of office space in London, according to the real estate firm Knight Frank. With that, prime rents in King’s Cross have risen 18% over the past three years, Chris Dunn, a commercial insight associate at the firm, told me. That percentage represents only the largest leases encompassing at least 10,000 square feet, like the ones OpenAI and Prometheus are signing. The shorter deals go for even more, he said, and now the vacancy rate for conventional office space is just 0.9%. “Demand has outstripped supply,” he continued.
Today, one of the big topics of the area is sovereignty. It was a wake-up call for many when Anthropic shut off access to Mythos and Fable this summer, leaving some in the ecosystem to conclude: “We’d better look after ourselves,” Saul Klein, co-founder of the VC firm Phoenix Court, told me.
Phoenix Court is located in the King’s Cross area and has three portfolio companies in the vicinity, including Olix (which just announced a .3 billion valuation), Early Health and CoMind. Robin Klein, co-founder of the firm, said the shutdown of Fable and Mythos access was a “small but sharp reminder that Europe can’t simply rent its AI capabilities and capacity; it needs to build and hold some of its own.” King’s Cross, he said, is where much of this building is actually happening.
“The bigger question,” he continued, “is whether the U.K. builds the infrastructure, compute, energy, capital, to make this self-reliance durable, rather than just hosting outposts of U.S. labs.”
Image Credits:Phoenix Court
Top founders want to stay
Simon Kohl, founder of Latent Labs, has offices in King’s Cross and San Francisco. The London office, at the moment, is growing faster, and he’s more bullish than ever on the ecosystem, he said. “The mood right now feels less like London trying to catch up and more like London becoming one of the default places to start a serious AI company,” he said. Look around and you are likely to see Wayve testing its autonomous cars. Founded in 2017 by co-founder Alex Kendall, the unicorn is one of London’s biggest success stories.
“Ten years ago, building a frontier AI company from London felt like an unusual choice,” Kendall told me. “Now it feels like an obvious one.” Wayve moved into King’s Cross in 2018 looking for a space that could double as a garage — “a rare combination in Central London,” Kendall said. He has watched the ecosystem mature around him — and it’s now evident that a startup can stay in London, raise serious capital, hire world-class AI talent, and remain globally competitive, he said. Down the street from Anthropic’s new 158,000-square-foot office is the AI agent builder Sierra and the AI video platform Synthesia.
Laura Gonzalez Florez, Synthesia’s chief of staff and head of people, says the company moved into its glossy new office building a year ago to accommodate its growing team. They were drawn to the area for the same reason as everyone else: “It’s very close to the airport … very close to where a lot of investors are,” she said.
Image Credits:Synthesia
Around two-thirds of Synthesia’s engineers are remote, Gonzalez Florez said, letting the company tap into an affordable, international, and diverse talent pool and helping it scale faster. “From London, we can hire and work, without any problem, people from anywhere, from Slovenia to Portugal,” she said.
Unsurprisingly, London’s AI boom is also causing a talent war.U.K. AI job postings have skyrocketed in the past few years, per data from PwC. When Anthropic announced it moved into town earlier this year, it listed, for example, a salary range of £260,000 to £630,000 for a machine learning research engineer when the average salary in London for the same role is around £102,000. Some founders in the U.K., like those in Silicon Valley, are being forced to raise more and bigger rounds to keep up.
“The real test is whether more globally significant AI companies are founded, funded, and scaled from the U.K., while continuing to attract the world’s best talent to build them here,” Zain Ali, founder of the King’s Cross-based AI legal firm Centuro, told me. “If that continues to happen, King’s Cross won’t just be an AI hub. It’ll become one of the U.K.’s most important strategic assets.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#Thisformernotorious #redlight #districtis #nowone #worlds #top #hubs #TechCrunchUK](https://techcrunch.com/wp-content/uploads/2026/08/DM9A2852.jpg?w=680)

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