World Liberty Financial (WLFI), a crypto project that is linked to the Trump family, has been brought under fire for freezing hundreds of investor’s portfolios. The move has led to a debate about fairness, trust and how crypto projects are in balance with the security of investors.
Developer claims that funds are illegally frozen
Bruno SKVORC, a Devel affiliated with Polygon, has accused WLFI of stealing his money by refusing to unlock his tokens. He shared an e -mail from the compliance team of WLFI, which marked his wallet as “high risk” because of the exposure to blockchain.
“TLDR is, they have stolen my money, and because it is the @potus family, I can’t do anything about it. This is the Mafia of New Age.“He shared on X.
SKVORC explained that he and five other investors had locked their tokens from the first day, with none of the promised 20% released. He pointed out the unfairness of WLFI who accepted his investment, but later blocked his wallet under the label of ‘High Risk’.
The flags on his account came from three sources:
- 40 ETH He had gone through the crypto mixer tornado cash
- Indirect exposure to sanctioned platforms such as Garrantex and Netex24
- An interaction with a dashboard later classified as a scam
Zachxbt flags inadequate compliance -tools
In chain researcher Zachxbt Explained that most “high risk” flags are often wrong.
In an example, he shared that a team that prepared a presale, relied on these tools, which marked some addresses as risky. But after they had revised them manually, Zach discovered that certain exchanges or smart contracts were wrongly labeled, and some addresses were mooded, simply because they were “8 hop away” from a risky address.
Although Zach said that WLFI was right to take compliance seriously, he warned that too seriously trusting defective tools could harm its credibility. He also suggested that the tokens of SKVORC could be restored if his wallet was marked error.
WLFI defends wallet on the blacklist
World Liberty Financial (WLFI) defended on the blacklist of hundreds of portfolios, including that of Justin Sun, and said that the move was aimed at protecting users and not to silence normal trade.
Of the 272 portfolios brought on the blacklist, approximately 215 were linked to phishing and 50 were affected via support channels.
Sun clarifying These are wallet activity only small test deposits and internal transfers included, without buying or selling, so it could not have influenced the market. He also shared that his tokens were frozen, even though he was an early investor and supporter of World Liberty Financial.
Sun emphasized That all investors should have equal rights, called tokens ‘holy and inviolable’, and urged WLFI to unlock his tokens at WLFI.