World Liberty Financial has identified and blacklisted a group of user wallets containing WLFI tokens that were compromised prior to the token's official launch.
The company, linked to President Trump's family, reported that attackers gained access to the wallets through external vulnerabilities related to third-party tools or malicious schemes that tricked users into revealing their private keys during the September 1 launch.
A total of 272 wallets were frozen immediately after users reported suspicious activity. They were asked to re-verify their identity so the company could confirm ownership and return the funds to their intended recipients.
WLFI stated that it also "developed and tested new smart contract logic to handle mass redistributions," noting that most of the compromises occurred through phishing and credential compromise.
On November 19, World Liberty Financial executed an emergency contract, resulting in the burning of 166.667 million WLFI, worth approximately $22.14 million, from addresses associated with the hack. The company will soon begin redistributing funds to wallets that have passed the necessary verification processes.
Thank you to everyone who has shown patience and trust throughout this process. We are proud to protect our community and are committed to continuing our work," World Liberty Financial stated.
Tokens belonging to users who have not yet contacted the World Liberty Financial team will be frozen until they are verified.