A $1 million crypto investment vanished overnight, and now its founders are partners with Donald Trump’s new blockchain empire. Victims seek justice as scrutiny grows.
In May 2024, Miami-based investor and motivational speaker Jonathan Lopez entrusted $1 million worth of cryptocurrency to Dough Finance, a trading platform that promised high-risk, high-reward returns through a practice called “looping.” At first, the strategy delivered—until it didn’t.
Looping allowed users to borrow against their crypto assets to buy more of the same, stacking risk with each cycle. The process, made seamless by Dough’s interface, appealed to aggressive traders like Lopez. According to court documents, he was charged a 5% fee on his deposits, with co-founder Chase Herro guiding him through the system and encouraging his investments. “We get reward(s) for the risks we take,” Herro told Lopez.
Then came the breach. On July 12, 2024, hackers exploited vulnerabilities in Dough’s code, stealing roughly $2.5 million from the platform—Lopez’s entire investment among them. Dough’s official post-mortem, published on Medium eleven days later, acknowledged the failure. “We acknowledge our mistake and are deeply sorry,” the statement read. “We will continue to work diligently to protect our users and their assets, learning from this incident to enhance our security posture.”
Despite pledges of restitution, the platform’s communication dried up. “We will not stop until everyone is made whole,” co-founder Zak Folkman promised users on Telegram, while Herro privately texted Lopez, “I said we’d take care of it… They said give them the weekend.” But by August, Dough’s social media went silent, and user groups were deleted.
Two months after the hack, Herro and Folkman launched a new venture: World Liberty Financial. Their new partners included none other than U.S. President Donald Trump and his sons Don Jr., Eric, and Barron. Introduced by Trump’s Middle East envoy Steve Witkoff, the family was reportedly impressed by the duo’s vision of decentralized finance. Trump assumed the title of “Chief Crypto Advocate,” while his sons became “Web3 Ambassadors.”
Now, Lopez is suing Herro for fraud, breach of fiduciary duty, and violations of Florida securities laws. His attorney, Joseph Pardo, told Reuters that Herro’s personal assurances influenced Lopez’s decision to invest in Dough. The suit, filed in January, seeks damages and legal costs.
Herro’s lawyers are fighting back, requesting dismissal or arbitration and describing Lopez as a “sophisticated” investor aware of the risks. The case is set for trial in April 2026 in Miami federal court.
Herro and Folkman, both longtime collaborators, have a colorful past in online sales and crypto. Herro once described himself as “the dirtbag of the internet,” while Folkman previously founded a website offering advice on dating. Despite the collapse of Dough, their fortunes rebounded with World Liberty, which has generated over $550 million in token sales—$65 million of which reportedly went to Herro and Folkman. The Trump family is believed to have earned around $400 million from the venture.
World Liberty is among several crypto-related businesses launched during Trump’s administration. These include the $TRUMP meme coin, a crypto ETF under Trump Media & Technology Group, and a stablecoin called USD1. The ventures have raised questions about financial transparency and ethics in office, particularly as Trump considers accepting a $400 million jet from Qatar.
The cryptocurrency sector remains highly vulnerable to hacking. Chainalysis reported $2.2 billion in crypto thefts during 2024 alone. In one incident, Bybit lost $1.5 billion in what researchers call the largest crypto heist to date. Meir Dolev, CEO of Israel-based Cyvers, whose firm detected the Dough hack, attributed the breach to flaws in Dough’s looping code. “Their implementation of complex, high-risk strategies like looping and de-looping without sufficient safeguards suggests they took excessive risks,” Dolev stated via email.
As legal battles unfold, former clients of Dough are left to wonder whether they will ever recover their investments—or if the founders have moved on to an untouchable new chapter backed by political power.
