Trump WLF co-founder accused of drug possession? The truth is, it's old news from 2022 being recycled; the case has long been closed.

Closely connected to Donald Trump, the CEO of the cryptocurrency project World Liberty Financial, Zach Witkoff, recently had a video of him allegedly being arrested for drug possession in 2022 widely circulated.

Miami nightclub altercation leads to search, police bodycam footage reveals past incident

The cryptocurrency project World Liberty Financial ($WLFI), which has close ties to U.S. President Donald Trump, has recently been embroiled in controversy involving co-founder and CEO Zach Witkoff. A police bodycam video from 2022, showing his arrest for suspected drug possession, suddenly went viral online. The footage, released by independent media outlet The Newsground on April 23, details the entire process of Zach Witkoff’s arrest outside the famous Miami nightclub E11EVEN on New Year’s Day 2022. At that time, Witkoff and his father, Steve Witkoff, attempted to enter the club but were refused, leading to a physical altercation with security personnel on site.

According to the footage from law enforcement bodycam, Miami police conducted a search on Zach Witkoff and found a bag of cocaine on him. During his detention, Witkoff appeared highly agitated, initially claiming he was helping a friend, then changing his story to say the bag wasn’t his at all.

Additionally, the video captured multiple attempts by him to pressure police and security staff, repeatedly emphasizing his friendship with nightclub owner Marc Roberts, only to be met with mockery and told to stop clinging to connections. He was eventually taken into custody on charges of obstructing justice, resisting arrest, and possession of a felony drug.

All charges were ultimately dropped, and Zach Witkoff admitted to past mistakes and apologized

Although the scene was intense, court records show that the case from four years ago has already been closed. After paying bail and pleading not guilty at the time, prosecutors decided to dismiss the felony drug charges, and the resisting arrest charge was also dropped. Regarding the resurfacing of this old footage during such a sensitive time, Zach Witkoff told CoinGape in an interview that he recognizes the incident occurred during a very difficult period in his life and feels deep shame about it. He emphasized that it was an isolated mistake that does not reflect his current character or lifestyle.

Shortly after the incident, Zach Witkoff married and started a family, which changed everything for him. He now lives a disciplined life, completely abstaining from drugs, focusing entirely on family and professional responsibilities. He especially appreciates the steadfast support from his wife and family during that low point.

In fact, Zach Witkoff now plays an important role in the crypto industry. Besides leading World Liberty Financial, he also plans to oversee the trust company under his umbrella, World Liberty Trust Company. The firm is actively applying for a national leasing license, aiming to become a compliant trust institution focused on stablecoin operations.

Justin Sun files lawsuit, dispute over 4 billion tokens freezing intensifies

This old news has been widely circulated at this time, believed to be related to ongoing legal battles involving WLFI. TRON founder Justin Sun recently filed a lawsuit in a California court, accusing the project of illegally freezing about 4 billion $WLFI tokens he holds.

In the complaint, Sun stated that WLFI deprived him of governance voting rights and even threatened to eliminate his assets permanently through token burning. He claimed that co-founder Chase Herro warned him that if he did not meet certain capital contribution demands, his holdings would be zeroed out via governance votes. Sun sees this as an extortion attempt to force funding to support the development of the $USD1 stablecoin.

• Related news: Is Sun going to be cut? Justin Sun angrily sues Trump WLF: tokens bought with big money being maliciously frozen!

In response to Sun’s allegations, Zach Witkoff has been quite assertive, publicly countering on social platform X, claiming that the lawsuit is just Sun’s attempt to divert attention from his own misconduct, and emphasizing that these claims are unfounded. The WLFI team previously stated that they froze certain addresses because they suspected the related funds were misappropriated from other holders’ assets, and that address is linked to Sun’s exchange, HTX.

Image source: X/@ZachWitkoff Zach Witkoff counters, claiming Sun’s lawsuit is an attempt to shift focus from his own misconduct

Sun responded by arguing that WLFI is trying to limit large token sell-offs to maintain price stability, using regulatory threats as leverage. Notably, Sun recently settled with the U.S. Securities and Exchange Commission (SEC) for $10 million, and WLFI was reportedly involved in threatening to report his compliance issues to authorities.

Trump family and community respond positively, project reputation faces multiple tests

As the controversy expands, members of the Trump family have also entered the scene. Donald Trump’s son, Eric Trump, publicly dismissed Sun’s lawsuit on social media, sparking heated debate within the crypto community.

Image source: X/@EricTrump Eric Trump mocks Sun on social media

• Some community members question whether $WLFI ’s governance is overly centralized, believing that arbitrary freezing of large holders’ tokens contradicts the decentralized spirit of blockchain.
• Others support the view that $WLFI ’s measures to protect the community from potential market manipulation are responsible actions.

Currently, an executive has offered to serve as a mediator, seeking to resolve the conflict outside court, but Sun has yet to respond officially.

The exposure of this four-year-old arrest video appears to be a strategic move to undermine the credibility of WLFI’s leadership in the ongoing legal battle. For a financial project bearing Trump’s name, brand reputation and regulatory compliance are crucial, especially as they actively promote stablecoin plans and seek regulatory licenses. Despite Zach Witkoff’s personal past being brought to light, the $WLFI team seems determined not to back down, reaffirming their commitment to protecting community interests.

This dispute over token locking proposals, the ownership of 4 billion tokens, and the personal reputations of top executives has made World Liberty Financial one of the most controversial topics in the current crypto market.