Trump's World Liberty Financial Settles Aave Debt with WBTC

President Trump's World Liberty Financial repays $11.75M in Aave debt using wrapped Bitcoin, raising concerns about liquidity in the crypto market.

A wallet linked to World Liberty Financial, associated with former President Donald Trump and managed by his sons, executed a significant transaction recently. On February 5, the wallet withdrew around 173 wrapped Bitcoin (WBTC) from Aave V3, utilizing these assets to address a stablecoin debt amounting to $11.75 million.

This action highlights the process of voluntary deleveraging, especially given the current market conditions where Bitcoin has experienced a considerable decline, dropping below the $63,000 threshold. This situation has compelled major holders, often referred to as whales, to liquidate some of their collateral in response to market volatility.