WLFI Crypto Venture Faces Security Scare Affecting User Wallets
WLFI, a crypto venture associated with Trump, encountered a security scare prior to its launch when a subset of user wallets were compromised through phishing attacks and exposed seed phrases. Investigations attributed the root cause to lapses in third-party security rather than vulnerabilities within WLFI's platform or smart contracts.
In response, affected wallets were frozen in September, with ownership verification conducted to protect users. WLFI is in the process of reallocating funds to verified users, requiring them to complete new KYC (Know Your Customer) checks and provide new wallet addresses to transfer funds to more secure accounts.
Engineers have tested new smart contract logic designed to enable bulk reallocations of tokens. The reallocation process has commenced for users who have opened support tickets and passed verification, while wallets that have not engaged with support remain frozen but can initiate the recovery process through the help centre.
WLFI launched its token on September 1, witnessing initial trading volume of approximately $1 billion in the first hour on Binance. Token prices ranged between $0.24 and $0.30, and a peak stake of 22.5 billion tokens was held by Trump out of a total supply of 100 billion tokens.
As of November 20, WLFI holdings are valued around $3.15 billion at a token price of $0.13, inclusive of 22.5 billion tokens. Additionally, governance rights and revenues from presales are estimated to have realized between $400 and $500 million to date.
The case highlights ongoing vulnerabilities in consumer-facing crypto projects, particularly involving phishing links, fake support channels, and improper key storage, all of which remain significant security concerns for the industry.
