World Liberty Financial (WLF) is facing intense scrutiny and severe accusations following its decision to freeze hundreds of user wallets, sparking outrage from prominent figures in the crypto space. A Polygon developer has vehemently labeled the firm as the "scam of all scams" and "new age mafia," while WLF defends its actions as necessary for user protection.
Accusations of Financial Misconduct and Broken Trust
Polygon developer Bruno Skvorc publicly accused World Liberty Financial of stealing his funds, stating his wallet was blacklisted due to "high risk blockchain exposure" and his tokens were permanently locked. Skvorc, one of at least 272 users impacted since WLF began trading, likened the firm to a "new age mafia" where recourse for affected users is nonexistent. Adding to the controversy, Tron founder Justin Sun, who invested $45 million, also had his assets "unreasonably frozen," emphasizing that a reputable financial brand must uphold "fairness, transparency, and trust," rather than resorting to unilateral actions that undermine investor confidence. The firm's close ties to the U.S. President Donald Trump and his family, who own 60% of WLF and have reportedly earned hundreds of millions from it, further amplify the criticisms.
WLF's Defense and the Complexities of Asset Freezing
In response to the backlash, World Liberty Financial has firmly defended its decision to blacklist wallets, asserting that its interventions are "solely to prevent harm" and "protect users." The firm released a breakdown of the blacklisted wallets, revealing that the majority (79%) were preemptively frozen due to links to a phishing attack, while 50 wallets were blocked at the owners' request after being compromised. Only a small fraction were flagged for high-risk exposure or suspected misappropriation. While on-chain sleuth ZachXBT acknowledged WLF's efforts to protect users, he cautioned against the inherent flaws of compliance tools and the significant reputational risks associated with blacklisting legitimate users or generating "false positives," urging WLF to find a crucial balance.
