Polygon developer Bruno Skvorc lashed out at World Liberty Financial (WLF) on Saturday, accusing the firm of stealing his funds. In a post on X, Skvorc wrote:
“…they stole my cash, and since it’s the @POTUS household, I can’t do something about it.”
Skvorc was one of the tons of of customers, together with Tron founder and WLF investor Justin Sun, whose tokens had been frozen by WLF.
The decentralized finance (DeFi) agency is carefully linked to the U.S. President Donald Trump and his household. A Trump entity owns 60% of WLF and earns 75% of income from token sale. Trump’s sons, Eric and Donald Trump Jr. are half of the agency’s administration. In line with an estimate revealed by The New Yorker in August, the Trump household earned about $412.5 million from WLF.
Skvorc hooked up the electronic mail response he obtained from WLF to his X submit, which famous that the agency would “not have the ability to unlock” his tokens. The agency justified the freezing of the tokens “as a result of the excessive threat blockchain publicity related to” Skvorc’s pockets.
Polygon developer likened WLF to ‘new age mafia’
Since WLF began buying and selling on Sept. 1, the protocol has blocked not less than 272 wallets. Denouncing the protocol as “the rip-off of all scams,” Skvorc famous:
“That is the new age mafia. There isn’t a one to complain to, nobody to argue with, nobody to sue. It simply… is.”
Skvorc is much from being the just one to criticize WLF’s freezing of belongings. In a protracted X post on Friday, Solar, who invested $45 million in WLF final yr, stated that his belongings had been “unreasonably frozen.”
Moreover, Solar famous that an important monetary model have to be rooted in “equity, transparency, and belief.” And never “on unilateral actions that freeze investor belongings,” he wrote, including:
“Such measures [freezing user assets] not solely violate the reliable rights of buyers, but in addition threat damaging broader confidence in World Liberty Financials.”
The WLFI token is buying and selling at round $0.19 at the time of writing—greater than 67% under its all-time-high on launch day.
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WLF has doubled down on its transfer to freeze belongings
In an X post WLF defended its choice to blacklist consumer wallets, stating:
“WLFI solely intervenes to guard customers, by no means to silence regular exercise.”
The agency additional added that the transfer was made “solely to forestall hurt” whereas it investigated and helped impacted customers.
WLF additionally shared a breakdown of the blacklisted wallets, which confirmed that 79% of the blocked wallets had been linked to a phishing assault. The agency claimed that it had preemptively frozen the 215 wallets to forestall hackers from draining the funds. WLF mentioned it’s working with the rightful proprietor of the wallets to safe their respective belongings.
The breakdown additionally revealed that WLF blocked 50 wallets at the house owners’ request after they reported that their wallets had been compromised. Solely 5 wallets had been flagged for high-risk publicity, whose safety dangers are presently underneath assessment, as per WLF.
Moreover, WLF blocked one pockets for suspected misappropriation of different customers’ funds. The agency mentioned it is going to proceed to work with customers to confirm management and safe funds, and share clear outcomes for every class of wallets as soon as evaluations are concluded.
On-chain sleuth ZachXBT praised WLF’s method however cautioned in opposition to the reputational dangers of blacklisting false positives. ZachXBT famous:
“The difficulty is majority of the time “excessive threat” publicity is inaccurate so you can not turn out to be reliant on compliance instruments as a group.”
ZachXBT wrote that all of the high compliance instruments are flawed, and WLF is doing a greater job than others like Circle, however warned that almost all groups fail to seek out the proper steadiness.
