World Liberty Financial Founders Reportedly Left Previous Clients After $2.5 Million Hack

According to a new report, World Liberty Financial (WLFI) co-founders Chase Herro and Zak Folkman did not reimburse clients of their last startup, Dough Finance, after a $2.5 million hack.

Herro is currently being sued by a Dough investor to recoup his lost assets. World Liberty may be a Trump family project, but none of the Trumps have anything to do with this incident. Hopefully, this detail will encourage an easy settlement.

WLFI Co-Founder Sued Over Dough Hack

The crypto industry has seen a lot of world-famous hacking incidents, but minor ones can suddenly resurface in unexpected ways.

Today, Reuters called attention to a July 2024 breach against Dough Finance that led to the loss of $2.5 million. The firm closed down shortly thereafter. After the hack, Dough’s co-founders went on to create WLFI, but investors remain at a loss:

“YOU—the Dough Finance community—have passed the governance vote to make token holders whole! Passed with 99.5% support. Thanks for making your voices heard. The team is now working on fund distribution—stay tuned for updates!” Dough posted one month after the hack. This was its last public statement, remaining silent ever since.

Shortly after the hack, Dough’s team acknowledged their mistakes, which enabled the theft to take place. They recovered $280,000, $180,000 of which were apparently delivered to former creditors.

However, since Dough’s co-founders went on to create WLFI with Zack Witkoff, there haven’t been any new developments.

Of Donald Trump’s various crypto projects, World Liberty Financial is currently attracting the most buzz. Between major partnerships and political controversies, Herro and Folkman’s new endeavor is making headlines and some serious profits.

Regardless of personal opinions, the venture has certainly been a major success.

Why, then, haven’t WLFI’s co-founders repaid their former backers at Dough? Last Friday, World Liberty invested $3 million in EOS tokens, a figure that exceeds the losses from the hack.

WLFI’s USD1 has a market cap of over $2 billion; a $2.5 million reimbursement is practically spare change next to that. What’s the holdup?

That question is at the center of a lawsuit filed by a former Dough investor against WLFI founder Chase Herro. Reuters claims that the plaintiff, Jonathan Lopez, is only targeting Herro, not Folkman or WLFI as a whole.

Since the July 2024 hack, users have primarily received reimbursements in DOUGH tokens, which are practically worthless in 2025:

Dough Finance Total Value Locked. Source: DefiLlama

Currently, the suit’s trial date is not scheduled until April 2026. Hopefully, the WLFI co-founders will reach a settlement with Dough’s creditors before that happens.

Whatever happens, WLFI may be a Trump family project, but none of the Trumps have any connection to or responsibility for this incident. This may encourage Herro and Folkman to resolve the issue easily.

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