WLFI Confirms Pre-Launch Wallet Breach Tied to Phishing as Fund Reallocation Begins
- WLFI plans fund reallocations after phishing-linked wallet breaches and wants users to finish KYC checks soon.
- WLFI token activity surged on major exchanges with heavy trading and fast shifts in price after its launch.
- WLFI stake value dropped as market conditions cooled and the project now faces stronger scrutiny from regulators.
World Liberty Financial confirmed that attackers accessed some user wallets through phishing and third-party lapses before its platform launched. The firm said the breach did not arise from flaws in its smart-contract design. It instead traced the issue to external weaknesses that exposed private wallets. The attack occurred around the time WLFI prepared its token rollout.
WLFI Introduces KYC Checks And New Wallet Process
WLFI reacted fast and froze the impacted wallets in September. The team then verified ownership and created a new workflow to secure user funds. The firm required users to complete fresh KYC checks to confirm identity. It also asked users to provide new wallet addresses for fund migration. These steps aimed to ensure accurate reallocation and block unauthorized claims.
Engineers built and tested new smart-contract logic to support bulk movements. The testing phase took longer than expected because the team chose to prioritize safety. WLFI said reallocations will begin for users who completed the verification steps. Wallets tied to users who have not yet engaged will remain frozen. Yet those users can still start the verification workflow through the help center.
Trading Surges As WLFI Token Records Massive Exchange Activity
The incident surfaced only weeks after WLFI’s high-profile token debut. The project launched the WLFI token after a series of teasers earlier in 2024. Trading started with sharp price swings on decentralized venues. WLFI fell more than 15% on launch day as markets stabilized.
Momentum shifted once major exchanges listed the asset. Trading exploded on Binance with almost $1B in volume during the first hour. Prices moved between $0.24 and $0.30 as demand increased. At peak levels, the Trump family’s stake of 22.5B tokens reached a paper value above $6B. The surge pushed WLFI into the spotlight across political and crypto circles.
WLFI Stake Value Falls As Prices Slip Below Launch Range
Market conditions cooled through November. As of November 20, the family’s stake is worth about $3.15B based on a token price of $0.13. The 22.5B tokens grant governance and revenue rights from presales that raised an estimated $400M to $500M. These tokens do not grant full economic control of the business.
WLFI now works to finalize fund reallocations while scrutiny increases. The project is facing renewed attention after new calls for a federal review of its governance token distribution. The firm continues to address security concerns as phishing and poor key storage remain major risks for users across the sector.
