World Liberty Financial reallocates $22.1M in WLFI following pre-launch wallet breach incident

Written by Ohris M. Greyoon, Blockchain & Crypto Expert

BTC+0.302%

WLFI+3.264%

Source: Coinmarketcap

Updated: Nov 20 2025

Emergency Recovery Action: World Liberty Financial (WLFI) executed an emergency burn-and-reallocate action, burning approximately $22.1 million in WLFI tokens from compromised wallets and reallocating the same amount to verified recovery addresses.
Compromised Wallets: The compromised wallets were primarily affected by phishing attacks and exposed seed phrases prior to the project's launch, leading WLFI to freeze 272 wallets and implement KYC checks for recovery.
Verification Process: Users who complete the verification process will receive their funds in new wallets, while unverified wallets will remain frozen until the users initiate the recovery process through the help center.
Political Scrutiny: The recovery effort occurs amid scrutiny from lawmakers regarding allegations that WLFI tokens were sold to sanctioned entities, which WLFI has not addressed in recent communications.

About the author

Ohris M. Greyoon

Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.

World Liberty Financial reallocates $22.1M in WLFI following pre-launch wallet breach incident

About the author

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