Trump-Linked WLFI Accused of Stealing Funds via Token Freeze
A Polygon DevRel engineer, Bruno Skvorc, has publicly accused Trump-linked World Liberty Financial (WLFI) of “stealing” his funds by enforcing a token freeze on his wallet. In an X post, Skvorc shared an email from WLFI’s compliance team flagging his address as “high risk” due to past interactions with Tornado Cash, sanctioned entities and a blacklisted dashboard, and refusing to unlock owed tokens. Skvorc says he is one of six investors subject to 100% token lockups since the presale, calling the incident “the new age mafia.” The controversy has sparked wider criticism of automated compliance tools. Onchain sleuth ZachXBT highlighted how such systems often mislabel addresses as high risk for trivial blockchain activity, urging manual reviews to prevent unjustified token freezes. Tron founder Justin Sun also revealed a similar freeze of his WLFI allocation, describing the move as “unreasonable” and contrary to blockchain values. The episode underlines growing concerns over compliance tool accuracy and the risk of token freeze measures in crypto project launches.
Bearish
The news of WLFI’s token freeze and alleged fund theft is likely to weigh on market sentiment. Forced lockups undermine trust in project governance and highlight flaws in compliance tools. Investors may become more cautious about presales and token unlock schedules, leading to reduced demand for newly issued tokens. In the short term, WLFI’s price could face further pressure as holders fear arbitrary freezes. Long-term, the episode may drive calls for clearer regulatory standards and more transparent compliance processes, but it also risks chilling investor confidence in emerging crypto projects.