Trump-linked World Liberty Financial (WLFI) has suffered a breach before its launch in 2025. The user wallets on the decentralized finance protocol were compromised via phishing attacks or exposed seed phrases, wrote the WLFI team in an X post.
Since the WLFI team identified this breach, they reworked parts of the smart contract code to safely transfer the funds from the compromised wallets. Additionally, they have checked that each affected user was the true owner of the breached wallets and verified their identities through the KYC (Know Your Customer) process.
WLFI phishing attack happened due to external vulnerabilities
Following the breach, the crypto company delved deep into finding the exact reason for the phishing attack. They found out that attackers gained access to WLFI wallets through third-party security lapses or external vulnerabilities.
Affected wallet users who submitted tickets and completed the required verification steps will soon have their funds moved to new, secure wallets.
“Wallets for users who haven’t reached out or completed verification will remain frozen – those users can still start the process through our help center,” said the WLFI executives.
WLFI responds with quick recovery
WLFI has taken responsibility by trying to recover the user funds. Crypto community on X is vocal about this approach, where one person stated: “At least they’re taking responsibility instead of pretending nothing happened – a rare sight in this space.”
Another X user wrote: “I’ve never seen a crypto project this committed to its community. Great work by the WLFI team.”
However, amid these positive comments, come questions about when WLFI will vote to decide on the tokens that are still locked. Locked tokens are tokens held back by a project for rewards, treasury, team allocation, or vesting.
“The community is requesting the unlocking of the remaining 80%. Didn’t you see that?” said an X user.
Senators raise concern over WLFI’s activities
Senators Elizabeth Warren and Jack Reed have recently questioned the potential security risks caused by WLFI. The crypto company launched its stablecoin without much clarity on how it is operated and regulated. Amid this concern comes WLFI’s active approach to recovering the funds from compromised wallets.
