World Liberty Financial Recovers Funds After Pre-Launch Wallet Breach
World Liberty Financial (WLFI), the DeFi platform linked to President Donald Trump and his family, revealed that some user wallets were accessed by attackers before the platform officially launched.
The company says the breach came from phishing attacks and third-party security lapses, not from flaws in its own smart contracts. After discovering the issue, WLFI froze the affected wallets and began verifying ownership to ensure funds are returned only to legitimate users.
How WLFI Handled It
WLFI required all impacted users to complete Know Your Customer (KYC) checks again. Only after completing these checks will users receive their funds in new, secure wallets. Those who haven’t completed verification yet will remain frozen but can still start the process through WLFI’s help center.
The team also built and tested new smart contract logic to handle the reallocation of funds safely. The company said the process took longer than expected, but it’s necessary to make sure everything is done correctly.
Background and Context
WLFI officially launched in 2024, introducing a USD1 stablecoin in April and its signature WLFI token in September. The platform has faced scrutiny over governance, transparency, and its rapid token sales.
The breach comes amid increasing attention from lawmakers. Just this week, Senator Elizabeth Warren called for an investigation, citing concerns that WLFI may have sold governance tokens to wallets linked to North Korea, Russia, Iran, and Tornado Cash.
WLFI emphasized that the pre-launch issue was external and unrelated to its smart contracts, and the company is now moving forward with the reallocation process for verified users.
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