4 hours ago
Polygon developer Bruno Skvorc lashed retired astatine World Liberty Financial (WLF) connected Saturday, accusing the institution of stealing his funds. In a post connected X, Skvorc wrote:
“…they stole my money, and due to the fact that it’s the @POTUS family, I can’t bash thing astir it.”
Skvorc was 1 of the hundreds of users, including Tron laminitis and WLF capitalist Justin Sun, whose tokens were frozen by WLF.
The decentralized finance (DeFi) steadfast is intimately linked to the U.S. President Donald Trump and his family. A Trump entity owns 60% of WLF and earns 75% of gross from token sale. Trump’s sons, Eric and Donald Trump Jr. are portion of the firm’s management. According to an estimation published by The New Yorker successful August, the Trump household earned astir $412.5 million from WLF.
Skvorc attached the email effect helium received from WLF to his X post, which noted that the steadfast would “not beryllium capable to unlock” his tokens. The steadfast justified the freezing of the tokens “due to the precocious hazard blockchain vulnerability associated with” Skvorc’s wallet.
Polygon developer likened WLF to ‘new property mafia’
Since WLF started trading connected Sept. 1, the protocol has blocked astatine slightest 272 wallets. Denouncing the protocol arsenic “the scam of each scams,” Skvorc noted:
“This is the caller property mafia. There is nary 1 to kick to, nary 1 to reason with, nary 1 to sue. It just… is.”
Skvorc is acold from being the lone 1 to knock WLF’s freezing of assets. In a agelong X post connected Friday, Sun, who invested $45 cardinal successful WLF past year, stated that his assets were “unreasonably frozen.”
Additionally, Sun noted that a large fiscal marque indispensable beryllium rooted successful “fairness, transparency, and trust.” And not “on unilateral actions that frost capitalist assets,” helium wrote, adding:
“Such measures [freezing idiosyncratic assets] not lone interruption the morganatic rights of investors, but besides hazard damaging broader assurance successful World Liberty Financials.”
The WLFI token is trading astatine astir $0.19 astatine the clip of writing—more than 67% beneath its all-time-high connected motorboat day.
WLF has doubled down connected its determination to frost assets
In an X post WLF defended its determination to blacklist idiosyncratic wallets, stating:
“WLFI lone intervenes to support users, ne'er to soundlessness mean activity.”
The steadfast further added that the determination was made “solely to forestall harm” portion it investigated and helped impacted users.
WLF besides shared a breakdown of the blacklisted wallets, which showed that 79% of the blocked wallets were linked to a phishing attack. The steadfast claimed that it had preemptively frozen the 215 wallets to forestall hackers from draining the funds. WLF said it is moving with the rightful proprietor of the wallets to unafraid their respective assets.
The breakdown besides revealed that WLF blocked 50 wallets astatine the owners’ petition aft they reported that their wallets were compromised. Only 5 wallets were flagged for high-risk exposure, whose information risks are presently nether review, arsenic per WLF.
Additionally, WLF blocked 1 wallet for suspected misappropriation of different users’ funds. The steadfast said it volition proceed to enactment with users to verify power and unafraid funds, and stock wide outcomes for each class of wallets erstwhile reviews are concluded.
On-chain sleuth ZachXBT praised WLF’s attack but cautioned against the reputational risks of blacklisting mendacious positives. ZachXBT noted:
“The contented is bulk of the clip “high risk” vulnerability is incorrect truthful you cannot go reliant connected compliance tools arsenic a team.”
ZachXBT wrote that each of the apical compliance tools are flawed, and WLF is doing a amended occupation than others similar Circle, but warned that astir teams neglect to find the close balance.
The station Polygon developer calls World Liberty Financial the ‘scam of each scams” appeared archetypal connected CryptoSlate.
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