Secret Deals, Foreign Investments, Presidential Policy Changes: The Rise of Trump’s Crypto Firm

The pitch from “ZMoney” arrived on the encrypted messaging app Signal just days before Donald J. Trump’s presidential inauguration.

“ZMoney” was Zachary Folkman, an entrepreneur who once ran a company called Date Hotter Girls and was now representing World Liberty Financial, the cryptocurrency firm that Mr. Trump and his sons had recently unveiled. Mr. Folkman was writing to a crypto startup in the Cayman Islands, offering a “partnership” in which the firms would buy each other’s digital coins, a deal that would bolster the startup’s public profile.

But there was a catch, The New York Times found. For the privilege of associating with the Trumps, the startup would have to make, in effect, a secret multimillion dollar payment to World Liberty.

“Everything we do gets a lot of exposure and credibility,” Mr. Folkman wrote, asserting that other business partners had committed between $10 million and $30 million to World Liberty.

The Cayman startup rejected the offer, as did several other firms that received a similar pitch from World Liberty, executives said. They considered the deal unethical, concluding that World Liberty was essentially selling an endorsement — and hiding the arrangement from the public.

World Liberty’s executives, who have maintained that they did nothing improper, were undeterred. They successfully pitched similar deals to other firms while also marketing their coin to buyers around the world, reaping more than $550 million in sales, with a large cut earmarked for the president’s family.