WLFI blacklists 272 wallets to combat phishing and theft, pledging transparency and user safety amid growing controversy with Justin Sun.
World Liberty Financial (WLFI), a rising decentralized finance (DeFi) project, has blacklisted 272 wallet addresses in recent days. The change is part of a wider effort to make platforms more secure, deter theft, and help users who are impacted by it. According to WLFI, the decision is made solely from on-chain data and security signals – not from typical trading activity.
Blacklist Aimed at Safety, Not Punishment, Says WLFI
To drill down, WLFI said 215 of the blacklisted wallets (roughly 79%) were associated with phishing attacks. In these cases, the team was able to take a preemptive stance to prevent hackers from stealing money. WLFI is now working closely with rightful owners to ensure control and the safe transfer of assets.
Related Reading: World Liberty Financial Blacklists Justin Sun Wallet After $9M WLFI Token Move | Live Bitcoin News
Also, 18% (50) of wallets were frozen at users’ request. These people said their wallets had been compromised. And by freezing the accounts, WLFI hopes to save users’ money and possibly get some of it back.
Furthermore, around 2% of wallets (5) were identified as high-risk exposure. These cases are still being reviewed and examined. Finally, one wallet is being investigated for alleged misappropriation of funds. WLFI has committed to an internal review to follow up on whether or not something was wrong.
Although having 272 wallets seems like a big number, WLFI explained that this is only a tiny fraction of the total number of users. They said their blacklist is a precautionary step and not a punishment.
However, things changed drastically when WLFI blacklisted the wallet of well-known crypto entrepreneur Justin Sun. This action came on the heels of on-chain data, which showed the sale of $9 million of WLFI tokens. The data originally comes from the blockchain analysis platform Arkham Intelligence.
WLFI Pledges Transparency in Ongoing Wallet Investigations
In response, Justin Sun shared on the social media platform X (formerly Twitter). Likewise, the wallet in question, he claimed, had only been used for small deposit tests. According to Sun, he bought or sold no WLFI tokens at that time. He thinks the black list may be the result of a misunderstanding or an overreaction by WLFI.
Sun’s inclusion on the blacklist has caused a significant amount of speculation in the crypto community. Some suspect it could be politically driven, not least because the Trump family owns WLFI. Others believe it could just be an error stemming from misunderstood on-chain activity.
The controversy broke out just days before WLFI token official launch on September 1, which fell on Memorial Day weekend. The launch followed months of insider investing and private fundraising, generating considerable excitement in the crypto space.
Going forward, WLFI pledged to keep investigating all cases flagged. The outcomes for each category will be published after the investigations are finished, the team says. In addition, any more general decisions made for the benefit of users will be published.
Finally, WLFI reiterated that blacklisting is not something to be done based on normal market participation. Their decisions are based solely on technical indicators, such as dubious on-chain behavior, phishing threats, or compromise reports – not personal prejudices or conjecture.
