Trump-Backed WLFI Freezes Phished Wallets, Rolls Out KYC
World Liberty Financial (WLFI), the Trump family–backed crypto project, faced a pre-launch security scare when a subset of user wallets was compromised via phishing attacks or exposed seed phrases. WLFI stressed that no flaws were found in its smart contracts and attributed the breach to third-party security lapses. The team froze affected wallets in September, conducted fresh KYC checks, and developed new smart contract logic for bulk fund reallocations. Verified users who submitted new wallet addresses will see their funds moved to secure accounts, while unverified wallets remain frozen pending verification.
WLFI’s token debuted on September 1, registering nearly $1 billion in trading volume on Binance within the first hour and trading between $0.24 and $0.30. The Trump family holds 22.5 billion of the 100 billion‐token supply, peaking at a paper value of over $6 billion and recently valued at about $3.15 billion at $0.13 per token. These locked governance tokens grant voting rights and share revenue from presales estimated at $400–$500 million realized so far.
The prompt freeze and KYC rollout aim to restore trust after the phishing incident, though market momentum has cooled since launch.
Neutral
The WLFI security scare centered on a subset of compromised wallets but did not involve flaws in the project’s own smart contracts. The swift wallet freeze, KYC rollout, and contract upgrades restore user confidence without triggering widespread sell-off. Although the incident may pressure WLFI’s short-term trading momentum, similar phishing fixes in past token launches have had limited broader market impact. Long-term, the corrective measures and clear communication support a neutral market view.