Michaela
World Liberty Financial (WLFI), a crypto venture linked to President Donald Trump and his family, has announced that wallet reallocations will soon begin for users who have completed Know Your Customer (KYC) verification, more than 2 months after a pre-launch phishing incident.
Key Points
- “Reallocation will begin shortly for all wallets that completed and satisfied the required verification steps
- 5/ Reallocation will begin shortly for all wallets that completed and satisfied the required verification steps
“Reallocation will begin shortly for all wallets that completed and satisfied the required verification steps. Wallets for users who haven’t reached out or completed verification will remain frozen — those users can still start the process through our help center,” WLFI wrote in an X thread announcing the reallocation.
WLFI shared that before the platform’s launch, a limited number of user wallets were compromised through phishing attacks or exposed seed phrases. The company added that it has since implemented updated smart contract protocols to securely reallocate affected funds and completed identity verification for users through KYC procedures.
WLFI emphasized that the issue did not stem from its platform or smart contracts, but from third-party security breaches that allowed attackers to access user wallets. In September, the company froze the affected wallets and verified ownership to facilitate a secure transition.
Related: Teachers Warn Crypto Legislation Could Put Retirement Funds at Serious Risk
Users reporting compromised accounts were required to complete KYC verification before receiving new wallets. Simultaneously, WLFI developed and tested updated smart contract protocols to manage bulk fund reallocations, reinforcing protections for its user base.
“We do not seek to blacklist anyone. We respond when alerted to malicious or high-risk activity that could harm community members. User safety > everything,” WLFI wrote in a previous X post following the wallet blacklisting.
Related: Silk Road Bitcoin Wallets Wake After 10 Years, Move $3M Suddenly
As WLFI moves forward with the reallocation process, the broader crypto community is watching closely. The situation spotlights the ongoing challenges that digital asset platforms face in maintaining security while scaling operations.
It also emphasizes the importance of robust user verification and proactive risk management in protecting investors’ funds. For WLFI, successfully completing this reallocation without further issues could help restore confidence among early adopters and set a standard for transparency in high-profile crypto projects. Moving ahead, users and industry observers alike will be evaluating how effectively WLFI balances innovation, security, and trust.
MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
