World Liberty Financial Discloses Reason for Blacklisting 272 Wallets

World Liberty Financial (WLFI) has confirmed that it blacklisted 272 wallets and explained why it made this move. This comes amid the DeFi project’s move to blacklist TRON founder Justin Sun’s wallet over allegations of him dumping his coins on investors.

World Liberty Financial Addresses Blacklisting 272 Wallets

In an X post, the DeFi project stated that it did this to protect users and not to silence normal activity. The team confirmed that it blacklisted these wallets over the past few days, while noting that they did this solely to prevent harm while they investigate and help users who are impacted.

World Liberty Financial went on to give a breakdown of the 272 wallets that they blacklisted. They blocked 215 of these wallets (79%)  due to phishing attacks. The team stated that they intervened to prevent hackers from draining funds and are now working with the rightful owners to secure the assets.

Furthermore, 50 (18.4%) wallet owners reported compromise through fake support teams, which prompted the blacklisting to help these token holders recover their funds. The DeFi project blacklisted five wallets due to high-risk exposure, while one of the 272 wallets is under review for misappropriation of other holders’ funds.

Notably, this development comes amid World Liberty Financial’s decision to blacklist Justin Sun’s wallets over allegations that he was dumping his tokens on investors. The TRON founder has denied these allegations, claiming that the team ‘unreasonably’ froze his tokens.

Amid this development, the WLFI token has rebounded from the decline earlier in the week. TradingView data shows that the token is trading at around $0.1966, up around 8% today.

Source: TradingView; WLFI Daily Chart

As CoinGape earlier reported, the World Liberty Financial token debuted at a $7 billion market cap when it launched on September 1. The token had dropped to an all-time low of $0.1632 amid a wave of sell-offs from presale investors taking profit.

ZachXBT Commends The WLFI Team

On-chain sleuth ZachXBT commended the World Liberty Financial team following a statement from one of the token holders whose wallet address the DeFi project blacklisted due to high-risk exposure.

In an X post, he stated that he is glad to see the team taking a more proactive approach than others, such as Circle, since this move ultimately benefits victims.

However, he noted that the team really needs to be cautious, as it may cause irreparable damage to their reputation if they blacklist the false positives. ZachXBT added that the hard part is finding the balance between it, and most teams fail to do that.

Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand.

Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing.

Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.

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