Two months after the hacking of their cryptographic platform and wiped, Chase Herro and Zak Folkman proved with a new business, this time with Trump and his three sons on board.
Herro and Folkman, previously managing the now disappeared paste finance, had discreetly abandoned hundreds of investors who lost millions of people in collapse and reappeared with World Liberty Financial, a crypto project that is now flowing money directly in the Trump family pockets.
According to ReutersJonathan Lopez, a 31 -year -old crypto merchant and Miami motivator lecturer, invested $ 1 million in paste in May 2024. He was presented to high -risk strategies such as the “loop”, which allows users to borrow against cryptographic assets on several occasions.
Herro guided him personally through it, saying to him: “We get rewards for the risks we take. Lfg. ” Then on July 12, everything was gone. Lopez's funds and more than $ 2.5 million in total were drained in a hacking that the dough later admitted was caused by vulnerabilities in its own code.
Herro has promised to repair the dough while planning the freedom of the world with Trump
In the aftermath of the breach, Herro sent a text to Lopez saying, “I said we would deal with it” and said the team needed the weekend to settle things. Folkman told Users of the Dough Telegram group that “we will not stop until everyone is made.”
But on August 18, the two founders were silent. According to former members.
While investors were waiting, Herro and Folkman already built world freedom. They were presented to Trump, Don Jr., and Eric Trump through the presidential envoy Steve Witkoff, and the Trump family quickly jumped.
Trump won the title “Chief Crypto Advocate”, while his sons were labeled “Web3 ambassadors”. None of them commented on the paste scandal.
Asked about the roles of Herro and Folkman, Eric Trump replied in an email: “They overloaded our wildest goals and our current trajectory is simply incredible.”
The new company has already pushed more than $ 550 million in tokens. From this, Herro and Folkman have collected at least $ 65 million, while the Trump family would have received around $ 400 million. This money sank while former paste users had trouble recovering their losses.
Lopez has taken legal action while Trump's partners celebrated DC
In January 2025, Lopez continued Herro before the Federal Court of Miami, alleging fraud, a false declaration, a violation of the fiduciary obligation and violations of titles. His lawyer, Joseph Pardo, said Lopez had invested on the basis of the promises Herro made on the safety and performance of Dough.
The Herro's legal team responded by calling Lopez a “sophisticated” investor who should have understood the risks and said that hacking was outside Herro's control. A trial is scheduled for April 2026.
Before the dough collapsed, Herro was called “the Internet bag” in a field registered with investors, boasting: “I do what is legal … In addition to that, I don't care.” The previous project of Folkman was “date hot plus Girls”, a site offering dating advice. Despite these history, their new partnership with Trump made a little public exam.
Meanwhile, the dough website is now locked and almost empty, as followed by Defilma. In July, the company said $ 281,000 from stolen assets had been recovered with the help of the SEAL 911 security group and promised pro-rata payments.
In September, Certik data showed that only $ 180,000 was sent to 134 portfolios. Eight users of paste interviewed said they had received nothing and did not know how the payments had been selected.
Legal challenges accumulate. Jonathan Cogan, lawyer for Kobre & Kim, explained that most victims make complaints on negligence because they are easier to prove than fraud. Joseph Cioffi, partner of Davis + Gilbert, said that the promises of “making users whole” are not legally binding without formal agreement.
And the warnings of Dough – calling their technology “novel, experimental and speculative” – ​​do not necessarily protect them from responsibility. On January 20, when the victims of Herro and Folkman awaited answers, the pair was seen in Washington, DC, celebrating an inaugural ball for the black tie for the return of Trump to the White House.
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