WLFI Faces Investor Backlash After Token Freezes Spark Scam Allegations

Developers and investors accuse Trump-linked crypto project of unfair blacklisting and withholding funds

World Liberty Financial (WLFI), a cryptocurrency project with links to US President Donald Trump, is under fire after developers and investors accused it of illegally freezing token allocations. Critics argue that the project’s compliance practices are flawed, with one developer calling WLFI “the new age mafia.”

Developer Calls WLFI a “Scam”

Bruno Skvorc, a blockchain developer known for his work on Ethereum 2.0 and founder of NFT company RMRK, said WLFI wrongfully locked his wallet.

“They stole my money. And because it’s tied to the president’s family, I can’t do anything about it,” Skvorc wrote on X.

I just got a reply from @worldlibertyfi. TLDR is, they stole my money, and because it's the @POTUS family, I can't do anything about it.

This is the new age mafia. There is no one to complain to, no one to argue with, no one to sue. It just… is. @zachxbt THIS is the scam of… pic.twitter.com/m6NP9VmHfd

— Bruno Skvorc (@bitfalls) September 6, 2025

According to Skvorc, his tokens were flagged as “high risk” due to past blockchain exposure, including an interaction with Tornado Cash and indirect links to sanctioned exchanges. He said WLFI initially accepted his funds but later refused to unlock his allocation.

“It was not high risk to take my money, but suddenly high risk to release what I am owed,” he added.

Flawed Compliance Tools at Center of Dispute

The controversy has drawn attention to the compliance tools used by projects like WLFI. Onchain investigator ZachXBT warned that automated systems often create false risk flags, unfairly penalizing legitimate investors.

“These tools are deeply flawed. I’ve seen addresses marked high risk just for interacting with DeFi contracts or exchanges several hops away,” he explained.

Justin Sun’s Tokens Also Frozen

Skvorc’s allegations came just one day after Tron founder Justin Sun revealed that his WLFI allocation was frozen. Sun’s wallet was blacklisted following a $9 million transfer, though onchain data showed the move happened after WLFI’s price decline.

Calling the freeze “unreasonable,” Sun said: “Tokens are sacred and inviolable. Blocking investors contradicts the core values of blockchain.”

The dispute raises broader concerns over how politically linked crypto projects handle compliance and investor rights. With WLFI already facing market volatility, accusations of arbitrary freezes and unfair treatment could undermine confidence in its long-term stability.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.