The crypto project World Liberty Financial (WLFI) has faced backlash following the freezing of hundreds of wallets, causing developers and investors to question the project’s practices.
Accusations of Wallet Freezing
Criticism of WLFI began when Polygon developer Bruno Skvorc accused the project of freezing his funds and refusing to unlock his wallet, claiming it was marked as 'high risk'. He characterized WLFI as 'the new age mafia', suggesting that investors lack a clear avenue for appealing decisions and recovering locked tokens.
WLFI's Response to Criticism
In response to the criticism, WLFI disclosed that it blacklisted 272 wallets, citing that most cases were related to phishing attacks and compromised accounts. According to the project's findings, 79% of the flagged wallets were linked to phishing attempts, while 18% were already taken over by scammers. WLFI insisted that the blacklist was put in place to protect investors, not to punish them.
The Trump Connection and Consequences
Launched in September with a $7 billion market cap, WLFI's branding is closely associated with the Trump family, increasing its visibility but also attracting scrutiny. Accusations involving the freezing of wallets belonging to high-profile figures like TRON founder Justin Sun add more complications for the project, as investors may now feel a lack of trust in its decisions.
The WLFI project is at a crossroads, wanting to showcase community protection while addressing investor concerns over fairness and transparency. Its future will depend on maintaining trust among its users.
