World Liberty Financial (WLFI) Explains Wallet Blacklist
World Liberty Financial (WLFI) Discloses Reason for Blacklisting 272 Wallets
World Liberty Financial (WLFI) has provided details surrounding its decision to blacklist 272 wallets. This action follows the project's move to also blacklist wallets associated with TRON founder Justin Sun amid allegations of token dumping.
Reasons Behind the Blacklist
According to an X post, WLFI initiated the blacklisting to safeguard its users from malicious activities. The team emphasized that the decision was driven by security concerns during an ongoing investigation to assist affected users. The breakdown of blacklisted wallets includes:
- Phishing Attacks: 215 wallets (79%) were blocked due to phishing attempts. WLFI intervened to prevent fund drainage and is collaborating with owners to restore access.
- Compromised Accounts: 50 wallets (18.4%) were blacklisted following reports of compromise via fake support teams, aiding token holders in fund recovery.
- High-Risk Exposure: Five wallets were flagged and blacklisted due to high-risk exposure.
- Misappropriation Review: One wallet is currently under review for potential misappropriation of other holders’ funds.
This development occurs alongside WLFI’s freezing of Justin Sun’s wallets, which he has contested, claiming the action was unreasonable. Sun denies allegations of dumping his tokens on investors.
Following the controversy, the WLFI token has shown resilience, trading around $0.1966, marking an 8% increase.
The WLFI token launched on September 1 with a $7 billion market cap but later experienced a drop to $0.1632 due to profit-taking from presale investors.
Community Response
On-chain analyst ZachXBT acknowledged the WLFI team's proactive approach, especially regarding a token holder's wallet address being flagged as high-risk. ZachXBT highlighted the importance of manual reviews alongside compliance tools to avoid false positives.
He cautioned that while the team's actions benefit victims, they must exercise diligence to avoid reputational damage from incorrectly blacklisting wallets. Finding the right balance, he noted, is a common challenge for teams in such situations.