BOSTON — Two cryptocurrency entrepreneurs who now work with U.S. President Donald Trump are facing legal action from former clients who claim they have not been compensated after a July 2024 hack wiped out millions in user deposits. The lawsuit targets Chase Herro and Zak Folkman, co-founders of Dough Finance, who now lead a new crypto venture tied to the Trump family.
Jonathan Lopez, a Miami investor, filed suit in January against Chase Herro, alleging fraud, misrepresentation, breach of fiduciary duty and violations of Florida securities laws. Lopez says he lost about $1 million worth of cryptocurrency on the Dough platform, which allowed leveraged crypto trading through a method known as “looping.”
Dough acknowledged the hack, citing vulnerabilities in its code as the reason for the security breach. The company announced that $2.5 million was stolen, of which $281,000 had been recovered. Eight Dough users told Reuters they received no reimbursement.
A couple of months later, Herro and Folkman emerged with World Liberty Financial, their latest crypto venture with partners U.S. President Donald Trump and his sons, Donald Jr., Eric and Barron. According to financial disclosures and internal estimates cited in court filings, the new venture has raised more than $550 million in tokens, with around $400 million in token sales going to the Trump family and $65 million to Herro and Folkman.
Court documents show Herro’s attorneys have requested the case be dismissed or moved to arbitration, stating that Lopez was a knowledgeable investor who accepted the risks involved. A federal trial in Miami is scheduled for April 2026.
World Liberty is one of several cryptocurrency-related businesses associated with the Trump Organization. According to Reuters, Herro, Folkman and World Liberty did not respond to requests for comment. The FBI declined to comment on whether an investigation is ongoing.
