World Liberty Financial (WLFI), a crypto project linked to the Trump family, is under fire for freezing hundreds of investor wallets. The move has sparked debate over fairness, trust, and how crypto projects balance security with investor rights.
Developer Alleges Funds Unlawfully Frozen
Bruno Skvorc, a devrel at Polygon, has accused WLFI of stealing his money by refusing to unlock his tokens. He shared an email from WLFI’s compliance team, which flagged his wallet as “high risk” due to blockchain exposure.
“TLDR is, they stole my money, and because it’s the @POTUS family, I can’t do anything about it. This is the new age mafia. There is no one to complain to, no one to argue with, no one to sue,” he shared on X.
Skvorc explained that he and five other investors had their tokens locked from day one, with none of the promised 20% unlocks delivered. He pointed out the unfairness of WLFI accepting his investment but later blocking his wallet under the label of “high risk.”
The flags on his account came from three sources:
- 40 ETH he had moved through the crypto mixer Tornado Cash
- Indirect exposure to sanctioned platforms such as Garantex and Netex24
- An interaction with a dashboard later classified as a scam
ZachXBT Flags Flawed Compliance Tools
On chain investigator ZachXBT explained that most “high risk” flags are often wrong.
In an example, he shared that a team preparing a presale relied on these tools, which flagged some addresses as risky. But after manually reviewing them, Zach found that certain exchanges or smart contracts were incorrectly labeled, and some addresses were flagged simply because they were “8 hops away” from a risky address.
While Zach said WLFI was right to take compliance seriously, he warned that relying too heavily on flawed tools could harm its credibility. He also suggested that Skvorc’s tokens might be restored if his wallet was flagged in error.
WLFI Defends Wallet Blacklisting
World Liberty Financial (WLFI) defended blacklisting hundreds of wallets, including Justin Sun’s, saying the move aimed to protect users and not to silence normal trading.
Of the 272 blacklisted wallets, about 215 were linked to phishing and 50 had been compromised through support channels.
However, Sun clarified that his wallet activity involved only small test deposits and internal transfers, with no buying or selling, so it couldn’t have affected the market. He also shared that his tokens were frozen despite being an early investor and supporter of World Liberty Financial.
Sun emphasized that all investors should have equal rights, called tokens “sacred and inviolable,” and urged WLFI to unlock his tokens.
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