World Liberty Financial (WLFI), a crypto project linked to U.S. President Donald Trump, announced it has stopped hacking attempts during its launch by blocking compromised accounts on the blockchain.
Blocking Compromised Accounts
WLFI stated that a designated wallet carried out 'mass blacklisting' transactions to disable accounts identified as compromised before the launch. The project team clarified that these hacking attempts originated from end-user compromises, such as private key losses, and were not exploits of the WLFI project itself.
Fraud Targeting WLFI Users
The WLFI team is collaborating with affected users to help them regain access to their accounts. Bad actors have continued to target WLFI users following the project’s token unlock on Monday, when 24.6 billion WLFI tokens were released for trading for the first time.
EIP-7702 Vulnerability
Additionally, Yu Xian, Founder of the security firm SlowMist, reported that certain WLFI holders had their tokens drained via a known exploit involving the Ethereum Improvement Proposal EIP-7702. Xian described it as a 'classic EIP-7702 phishing exploit,' in which hackers use the EIP-7702 upgrade to rob WLFI token wallets.
As a result of the blocklisting measures, WLFI was able to protect some of its users from theft. However, ongoing attempts by malicious actors highlight the importance of enhancing security in crypto projects.
