Trump’s crypto partners Chase Herro and Zak Folkman resurfaced with a new venture just two months after their previous crypto platform, Dough Finance, collapsed following a major hack. Despite investors’ loss of millions, the duo reappeared with World Liberty Financial, now backed by Donald Trump and his three sons.
Herro and Folkman, who ran Dough Finance before it shut down, are accused of abandoning hundreds of users after a July 2024 breach drained over $2.5 million. One of the largest investors, Jonathan Lopez of Miami, lost $1 million. He was guided into high-risk strategies like looping, where crypto assets are repeatedly used as collateral. Herro directly encouraged the investment with messages promoting risk-taking.
Dough collapsed as new venture launched
After the platform was hacked, Herro told investors they would handle the problem and that they needed time to fix it. Folkman told Dough’s Telegram group that all users would be compensated. By mid-August, both had disappeared. Social accounts and investor chat rooms were either abandoned or deleted.
At the same time, Herro and Folkman laid the groundwork for World Liberty Financial. They were introduced to Donald Trump, Don Jr., and Eric Trump through Steve Witkoff, a presidential envoy. The Trump family joined the project quickly. Trump took the title of Chief Crypto Advocate, while his sons became Web3 Ambassadors. They did not issue statements about the earlier Dough failure.
Money flowed into new project while old users waited
World Liberty Financial has already moved over $550 million in token value. Herro and Folkman reportedly made at least $65 million. The Trump family is said to have received around $400 million. This activity continued while many Dough investors were left without support or explanation.
Though Dough said $281,000 of the stolen funds had been recovered with help from SEAL 911, blockchain data from CertiK in September showed only $180,000 was distributed to 134 wallets. Several users reported receiving no compensation and said the distribution process was unclear.
Lawsuit filed as questions remain
In January 2025, Lopez filed a lawsuit in Miami federal court accusing Herro of fraud, misrepresentation, and other violations. Herro’s lawyers claimed Lopez was a knowledgeable investor and the hack was beyond their control. As legal action continues, Herro and Folkman were seen attending a black-tie event in Washington during Trump’s 2025 inauguration.