Trump-Backed Crypto Project WLFI Faces Security Scare Ahead of Launch
World Liberty Financial (WLFI), the cryptocurrency venture backed by the Trump family, encountered its first security incident just before its token launch. A subset of user wallets was compromised through phishing attacks or exposed seed phrases, prompting immediate action from the project's team.
The WLFI team clarified that the breach did not stem from vulnerabilities in its platform or smart contracts, instead attributing it to third-party security lapses. Affected wallets were frozen in September, and ownership verification processes were initiated to mitigate risks.
To bolster security, WLFI has rolled out enhanced Know-Your-Customer (KYC) checks and a new wallet allocation process. Users reporting compromises were required to complete fresh KYC procedures and submit new wallet addresses for fund transfers. Engineers also developed new smart contract logic to handle bulk reallocations securely.
