WLFI Breach Raises Eyebrows for Trump-backed Crypto Firm

World Liberty Financial (WLFI) token, a crypto project backed by the US President Donald Trump, incurred significant security breaches and attacks in 2025. The frequent threats and attacks faced by the token has put it in the blacklist as a token that is incapable of securing user interest. 

Hackers have exploited WLFI’s known vulnerability linked to Ethereum’s Petra upgrade, specifically the EIP-7702 feature. With this vulnerability, hackers will be able to pre-plant malicious delegate smart contracts in victim wallets after gaining control of their private keys through phishing or other malicious methods. When the victim deposits Ethereum to pay gas fees or interacts with their wallet, the malicious contract automatically drains WLFI tokens and other assets to hacker-controlled addresses.

Key Details of the Security Breach

The vulnerabilities that led to these issues occurred from user security breaches. Over 100 wallets underwent security breaches with account holders suffering significant losses. The WLFI team has promptly responded by implementing on-chain blacklisting to disable accounts identified as compromised, helping to block theft attempts. The recent WLFI token launch and unlocking of 24.6 billion tokens attracted the attention of the hackers and led to these untoward incidents.

Scammers created fake WLFI-like contracts and phishing campaigns to trick users into interacting with malicious contracts. To prevent further such issues, experts have warned wallet addresses to be vigilant about private key security, avoid phishing links, and consider moving tokens to secure wallets promptly.

How did WLFI address the Issue? 

Upon identifying the breach, WLFI has frozen the affected wallets and has taken other necessary steps to counter the issue. It has made it mandatory that the users complete KYC checks to reconfirm their identity before new wallets are allocated to them. The company has also announced that the engineers have found a new way to safely reallocate wallets to the affected addresses. For those who have completed the verification process, WLFI will soon start reallocating the funds. For those who are yet to complete the verification process, their wallets will remain frozen.

Democratic Senators Demand Investigation

Democratic Senators Elizabeth Warren and Jack Reed have called for an investigation into the security issues of the Trump-backed WLFI tokens, which have caused financial losses to hundreds of investors. They accuse WLFI of selling its tokens to suspicious investors. They sent a letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent to order a probe into the issues and the company’s alleged alliance with various actors from North Korea and Russia. The senators also accused WLFI of lacking adequate infrastructure to counter such phishing attacks. 

The senators also accused the Trump family of having ties with the WLFI token, which prevented administrative officials from acting fearlessly. They also accused WLFI of having very loose AML controls. 

The Bottom Line

This incident again demonstrates that cryptocurrencies are prone to threats and security breaches if not used with care. The WLFI authorities are doing their best to mend the situation. However, it emphasizes the responsibility of crypto users and wallet holders to follow the required procedures to ensure safety in transactions.