In a recent development within the cryptocurrency sector, concerns have been raised about a new cryptocurrency startup led by Donald Trump's sons, Donald Jr. and Eric Trump. The venture, called World Liberty Financial, has caught the attention of Trump's loyal allies in the crypto industry but not for positive reasons.

According to a report by Politico, World Liberty Financial has been confronted with a series of setbacks since its inception. The most notable among them are hacking incidents that have targeted members of the Trump family. This, combined with worries over the startup's close association with a blockchain company that suffered a $2 million loss due to security breaches, has led to concerns within the crypto community.

Crypto venture capital firm Castle Island Ventures partner, Nic Carter, who also supports Trump, expressed his worry in an interview with Politico, stating, "This is a huge mistake. It seems like Trump's inner circle is just cashing in on his recent endorsement of crypto in an unsophisticated manner, and frankly it appears as though they're squandering a lot of the goodwill that's been established with the industry so far."

Recent incidents involving the Trump family have further added fuel to the fire. Earlier this week, accounts belonging to Trump's daughter-in-law and daughter were hacked and used to promote a crypto token allegedly associated with the Trump brothers' startup. World Liberty Financial swiftly took action and warned users not to click on any suspicious links or purchase any tokens shared through these compromised profiles.

In response to the criticism and concerns, a representative for World Liberty Financial, Zak Folkman, emphasized the company's commitment to building a top-tier decentralized finance platform. He also confirmed that Lara Trump (Eric Trump's wife) and Tiffany Trump (Donald Trump's daughter) are not involved in the project.

However, doubts persist around the team at World Liberty Financial. The firm's white paper outlines a borrowing and lending service similar to Dough Finance, a blockchain app that fell victim to a $2 million hack in July. What raises eyebrows is that the four individuals behind Dough Finance are now listed as team members of World Liberty Financial.

The timing of this venture has also elicited questions about potential conflicts of interest. Donald Trump has pledged to make the United States the "crypto capital of the planet" if he secures another term in office. This has led to speculation that the Trump family's foray into the crypto world could be driven by personal gain and could potentially influence cryptocurrency policies.

The entry of the Trump family into the cryptocurrency space has been met with skepticism and concern, particularly in light of recent hacking incidents and the association with a compromised blockchain company. The outcome of this venture will likely have implications for the perception and acceptance of cryptocurrency within the political sphere, especially if it is viewed as a means for the Trump family to profit from a potential return to the presidency.

(Note: This news article is based on the provided information and has been generated for informative purposes only. It does not constitute investment advice.