WLFI Freezes Affected Wallets After Pre-Launch Compromise
The post WLFI Freezes Affected Wallets After Pre-Launch Compromise appeared on BitcoinEthereumNews.com.
World Liberty Financial (WLFI) froze 215 wallets due to pre-launch phishing, implemented KYC re-verification, and developed new smart contract logic to reallocate funds, clarifying external security lapses. World Liberty Financial (WLFI), the Trump family-backed crypto project, is addressing its first security issue. It warned of the fact that a subset of user wallets was subject to compromises of a phishing nature. This was at about the same time as its token launch. WLFI Addresses Pre-Launch Security Breaches In an X post on Thursday, the WLFI team reported that some wallets were hacked before the platform’s go-live. This occurred either by phishing attacks or by uncovered seed phrases. WLFI revealed that there were a small number of compromised user wallets prior to launch. 1/ Prior to WLFI’s launch, a relatively small subset of user wallets were compromised via phishing attacks or exposed seed phrases. Since then, we’ve tested new smart contract logic to safely reallocate user funds and verified users’ identity via KYC checks. Shortly, users who… — WLFI (@worldlibertyfi) November 19, 2025 This incident was caused due to phishing or exposed seed phrases. The platform responded by freezing affected wallets. They started KYC re-verification as well. New logic was introduced into smart contracts to transfer funds to secure wallets. Related Reading: WLFI News: WLFI Deploys USD1 Stablecoin on AB Chain to Power Faster Stablecoin Payments | Live Bitcoin News WLFI stressed that the incident had nothing to do with its platform or contracts. It was fbased on third party security problems. In addition, Funds will be shifted to users that complete verification. This process is all about safety first, and speed second. Measures Implemented to Address Compromise and User Concerns Before the launch of WLFI, there was a relatively small subset of user wallets being compromised. This was done through…
Filed under: News - @ November 20, 2025 12:28 pm