Trump-Linked WLFI Token Under Fire: Freezing Wallets, Stealing Funds, and Lost Trust

A whale has withdrawn 24.05 million WLFI tokens from Bybit, with the amount valued at approximately $4.94 million based on the token's current market price of $0.205 per WLFI [1]. This large-scale withdrawal highlights the growing volatility and uncertainty surrounding World Liberty Financial’s native token, which has faced significant scrutiny since its launch in early September 2025. The token, linked to the Trump family, has seen dramatic price swings, including a 40% drop in the first week of trading and further declines in the following days [2].

The withdrawal is part of a broader pattern of investor caution in the WLFI ecosystem. The project has drawn attention not only for its price fluctuations but also for its governance and compliance practices. Recent actions by the WLFI team, including the blacklisting of 272 wallets, have raised concerns over centralized control. These include the freezing of tokens belonging to major investors like Tron founder Justin Sun, who claimed the move was “unreasonable” and violated the principles of decentralization [1]. The WLFI team justified the blacklisting as a security measure aimed at preventing suspected market manipulation and protecting user funds. However, critics argue that such actions contradict the core ethos of blockchain and undermine investor confidence [1].

The controversy has also drawn public figures and developers into the spotlight. Bruno Skvorc, a blockchain developer with ties to Ethereum 2.0 and RMRK, accused WLFI of “stealing” his funds by refusing to unlock his tokens. His wallet was flagged as “high risk” due to previous interactions with crypto mixer Tornado Cash and other indirectly connected entities, such as Garantex and Netex24 [1]. Skvorc’s experience has sparked broader criticism of the automated compliance tools used by WLFI and similar projects. Analysts have pointed out that these tools often generate flawed risk assessments based on trivial or indirect activity, leading to misinformed restrictions [1].

WLFI’s volatility has further been amplified by the actions of early investors and exchanges. The token’s initial price spike to $0.46 was followed by a sharp decline to $0.16 within days, despite a token burn of 47 million units intended to stabilize the market [3]. Analysts have attributed the drop to typical behavior in new token launches, where early hype is followed by profit-taking and liquidity pressure. However, the severity of the decline and the subsequent market manipulation allegations have set WLFI apart from other tokens in the sector. The project has attempted to restore confidence by partnering with established DeFi protocols like Aave and emphasizing its governance model, which allows token holders to influence USD1, a dollar-backed stablecoin [2].

Despite these efforts, technical indicators suggest that WLFI remains under pressure. The token has struggled to hold above the $0.22 psychological level, with some analysts predicting further declines to as low as $0.15 or $0.10 [3]. The recent 25% price surge following the blacklisting of 272 wallets provided a temporary boost, with the token briefly trading near $0.23 [5]. However, this rebound has not fully restored investor trust, especially among those whose tokens were frozen without clear justification. The project’s future will likely depend on its ability to address these governance concerns, demonstrate true decentralization, and maintain transparency in its operations.

Source: [1] Crypto dev claims Trump-linked WLFI 'stole' his money (https://cointelegraph.com/news/developer-trump-wlfi-stealing-tokens) [2] New crypto token boosts Trump family's wealth by $5 billion (https://www.cbsnews.com/news/trump-wlfi-world-liberty-financial-crypto-wealth) [3] World Liberty Financial's WLFI Token Plunges Amid ... (https://www.fxleaders.com/news/2025/09/08/world-liberty-financials-wlfi-token-plunges-amid-manipulation-allegations-and-volatility) [4] World Liberty Financial's WLFI token rebounds 4% after ... (https://finance.yahoo.com/news/world-liberty-financial-wlfi-token-093436744.html) [5] WLFI Token Price Surges 25% After Blacklisting Suspected ... (https://www.livebitcoinnews.com/wlfi-token-price-surges-25-after-blacklisting-suspected-manipulators/) [6] Trump-Linked WLFI Faces Accusations of Withholding ... (https://cryptonews.com.au/news/trump-linked-wlfi-faces-accusations-of-withholding-funds-as-backer-justin-sun-claims-us75m-stake-frozen-130725/)