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.

A crypto project closely associated with Trump, World Liberty Financial, CEO Zach Witkoff, has recently had a viral spread of a video reportedly showing his arrest in 2022 for alleged drug possession.

A Miami nightclub clash triggers a search; police bodycam reveals events from four years ago

The crypto project World Liberty Financial ($WLFI), closely tied to U.S. President Donald Trump, has recently fallen into a media storm. A police law-enforcement bodycam video allegedly showing co-founder and CEO Zach Witkoff being arrested in 2022 on suspicion of drug possession suddenly went viral online. The video, released by independent media outlet The Newsground on April 23, documents in detail the entire arrest process outside the famous Miami nightclub E11EVEN on New Year’s Day in 2022. At the time, Zach Witkoff and his father, Steve Witkoff, were denied entry into the club, and then a physical altercation broke out with security personnel on site.

According to the footage from the law-enforcement bodycam, Miami police searched Zach Witkoff at the scene and found a bag of cocaine on him. During the period when he was detained, Zach Witkoff appeared extremely agitated—at one point he claimed he was helping a friend to explain himself to police, but later changed his story to say the bag wasn’t his at all.

In addition, the video also recorded multiple attempts by him to put pressure on police and security staff. He repeatedly emphasized that he was friends with nightclub owner Marc Roberts, only to be met with sarcasm from the security personnel, who told him to stop clinging to that connection. Police ultimately took him back on multiple charges, including interfering with public order, resisting arrest, and possession of felony drugs.

All charges were ultimately dropped; Zach Witkoff admits mistakes of the past and apologizes

Although the scene of the clash in the video was intense, court records show that the case, which happened four years ago, is already long over. After Zach Witkoff paid bail and entered a not-guilty plea at the time, prosecutors ultimately decided to drop his felony drug possession charges, and the resisting-arrest charge was also canceled. In response to this old video being resurfaced during such a sensitive time, Zach Witkoff, in an interview with CoinGape, said he acknowledges that the incident occurred during an extremely difficult period in his life and that he feels deep shame about it. He stressed that it was an isolated mistake and does not represent his current character or lifestyle.

Shortly after the incident, Zach Witkoff entered into marriage and started a family—responsibility that changed everything for him. He currently leads a disciplined life, completely abstaining from drugs, and puts his focus entirely on family and professional responsibilities. He especially thanked his wife and family for the steadfast support they provided during that low point.

In fact, Zach Witkoff now plays an important role in the cryptocurrency industry. Besides leading World Liberty Financial, he also plans to lead its trust company, World Liberty Trust Company. The company is working to apply for a national leasing license, aiming to become a compliant trust institution focused on stablecoin business.

Justin Sun files a lawsuit; dispute over freezing 4 billion tokens keeps heating up

This old matter has been widely circulated at this time, with many believing it is related to the ongoing legal battle involving World Liberty Financial. Justin Sun, founder of TRON (TRON), has recently officially filed a lawsuit against WLFI in a California court, accusing the project of illegally freezing about 4 billion $WLFI tokens he holds.

In the complaint, Sun states that WLFI deprived him of his governance voting rights and even threatened to permanently eliminate his assets through a process of burning. He claims that co-founder Chase Herro warned him that if he did not comply with certain capital-contribution requirements, his stake would be zeroed out through governance votes. Sun views this as a form of extortion intended to force funding to support the development of the $USD1 stablecoin.

• Related news: Will Sun also be “cut”? Justin Sun sues Trump; WLF: tokens bought with big money are maliciously frozen!

In response to Sun’s allegations, Zach Witkoff has been quite firm. He publicly countered on social platform X, saying the lawsuit is merely Sun’s attempt to divert attention away from his own improper conduct, and emphasized that these claims have absolutely no basis. The WLFI team previously stated that they froze certain addresses because they suspected that the related funds were involved in misappropriating other holders’ assets, and that address happens to be connected to HTX, the exchange under Sun’s umbrella.

Image source: X/@ZachWitkoff Zach Witkoff responds, saying the lawsuit is an attempt to shift attention away from his own misconduct

Sun then rebutted, arguing that WLFI is aiming to limit the dumping of large amounts of tokens to maintain price stability, and using regulatory threats as leverage. Notably, Sun reached a settlement of $10 million with the U.S. Securities and Exchange Commission (SEC) just a few months ago, and WLFI has been accused of threatening to report his compliance issues to the authorities.

The Trump family and the community respond head-on; the project’s reputation faces multiple tests

As the controversy expands, members of the Trump family have also joined the fray. Trump’s second son, Eric Trump, publicly refuted Justin Sun’s lawsuit on social media, which immediately triggered heated debate within the crypto community.

Image source: X/@EricTrump Eric Trump, Trump’s second son, posts mocking comments about Sun on social media

• Some community members question whether $WLFI ’s governance mechanism is too centralized, arguing that the arbitrary freezing of tokens held in large amounts runs counter to the spirit of decentralization of blockchain.
• However, there are also supporters who believe that $WLFI taking necessary steps to protect the community from potential market manipulation is a responsible move.

At present, a CEO has already come forward offering to act as an intermediary and seek to resolve the conflict outside of court, but Justin Sun has not yet issued an official response.

The exposure of this four-year-old arrest video appears clearly intended to undermine the credibility of WLFI’s leadership in the ongoing legal battle. For a financial project bearing the name Trump, brand reputation and a compliance image are crucial—especially during the key moment when they are actively pushing forward stablecoin plans and seeking regulatory permissions. Although Zach Witkoff’s personal past has been brought back into the spotlight, the $WLFI team seemingly has no intention of backing down, reiterating that it will take every necessary measure to protect the interests of the community.

This melee involving token lock-up proposals, a dispute over ownership of 4 billion tokens, and the personal reputations of senior executives has made World Liberty Financial one of the most controversial focus points in the current crypto market.