Security Scandal Revealed: World Liberty Financial Burns and Reallocates $22.1 Million WLFI

Jakarta, Pintu News – World Liberty Financial recently took emergency steps to burn and reallocate $22.1 million worth of WLFI tokens in response to a security breach that occurred before the official launch.

The incident involved a phishing attack and key phrase exploit that resulted in several user wallets being compromised. This step was taken to ensure the security of user assets and the integrity of the project.

Recovery Process

World Liberty Financial (WLFI) revealed that some user wallets have been compromised through phishing attacks and key phrases exposed before the project was launched. This weakness came from a third party, not from the WLFI contract itself. After testing the logic of the new smart contract for controlled transfers, WLFI implemented emergency functionality on November 19.

This function burned approximately 166.667 million WLFI, valued at approximately $22.14 million, from compromised wallets and issued the same amount to a verified recovery address. Most of the affected wallets were victims of phishing schemes and leaked keys.

Some cases are related to the EIP-7702 issue in September during Ethereum’s Pectra upgrade, where perpetrators implanted malicious contracts in compromised wallets which then triggered a token drain.

Read also: 1 Pi Network (PI) Price in Indonesia Today (11/21/25)

Political Pressure and Current Position

This recovery comes amid questions from legislators. Earlier this week, Senators Elizabeth Warren and Jack Reed called on federal agencies to investigate claims that WLFI tokens were sold to sanctioned entities.

WLFI has not responded to the allegations in its latest statement. The project continues to work on the USD1 stablecoin and upcoming integrations. After completing the recovery process, the team stated that they are ready to move on and focus on development.

Conclusion

This incident highlights the importance of security in the digital finance industry and how companies like World Liberty Financial take quick steps to repair the damage done. With the recovery measures taken, WLFI hopes to restore user confidence and strengthen their position in the market.

FAQ

What caused the need for token burning and reallocation by World Liberty Financial?

Phishing attacks and key phrase exploits that resulted in several user wallets being compromised prior to the official launch of the project were the main causes for the need for this emergency measure.

How much WLFI was burned and reallocated by World Liberty Financial?

A total of 166.667 million WLFIs, valued at approximately $22.14 million, were burnt and the same amount was issued to verified recovery addresses.

What impact will this security incident have on the World Liberty Financial project?

The incident prompted questions from legislators and highlighted the need for increased security, but the team has taken recovery measures and is ready to resume focus on development.

What’s next for World Liberty Financial after this incident?

The company will continue to work on USD1 stablecoin development and upcoming integrations, while ensuring the security of user assets.

How has World Liberty Financial responded to allegations of token sales to sanctioned entities?

WLFI has not responded to the allegations in its latest statement and is focused on recovery and further development.

That’s the latest information about crypto. Follow us on Google News to get the latest crypto news about crypto projects and blockchain technology. Also, learn crypto from scratch with complete discussion through Pintu Academy and stay up-to-date with the latest crypto market such as bitcoin price today, xrp coin price today, dogecoin and other crypto asset prices through Pintu Market.

Enjoy an easy and secure crypto trading experience by downloading Pintu crypto app through Google Play Store or App Store now. Also, get a web trading experience with various advanced trading tools such as pro charting, various types of order types, and portfolio tracker only at Pintu Pro.

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• World Liberty Financial. WLFI Wallet Breach 2025. Accessed on November 21, 2025
• CCN. WLFI Burn Token Price Breakout. Accessed on November 21, 2025
• Featured Image: Cryptoslate