Crypto: World Liberty Financial borrows $75M against its own WLFI token on Dolomite, raising insider and liquidity concerns

On-chain data reviewed by CoinDesk shows World Liberty Financial (WLF) deposited 5 billion WLFI tokens as collateral on the DeFi lending protocol Dolomite to borrow $75 million in stablecoins, then transferred more than $40 million to Coinbase Prime. The pledged collateral is nominally valued at about $440 million, but WLFI trades with limited market depth, fueling concerns about potential bad debt if liquidations are triggered. Dolomite co-founder Corey Caplan is listed as an advisor to World Liberty Financial, creating a direct insider link between the borrower and the lending protocol. The borrowing pushed Dolomite's USD1 pool to 100% utilization, leaving existing depositors unable to withdraw. WLF now accounts for roughly 55% of Dolomite's total supply liquidity of $835.7 million. Following the transactions, WLFI fell nearly 10% to a record low. Separately, in early April, another 3 billion WLFI tokens valued at $266 million were sent to a different Gnosis Safe wallet, with no clear on-chain destination yet visible.