Trump-backed World Liberty Financial reallocates funds following “third-party security lapses”

World Liberty Financial (WLF), connected to the Trump family, announced it is reallocating user funds and verifying identities via KYC following security issues attributed to "third-party security lapses," which compromised a small number of user wallets through phishing or exposed seed phrases. The project stated the issue was not related to the WLF platform or smart contract itself and is testing new logic to secure accounts, assuring affected users who pass verification will receive funds in new wallets. This announcement follows scrutiny from Senators Warren and Reed, who requested investigations into alleged WLF token sales to sanctioned regions like North Korea, Russia, and Iran, based on a report from Accountable.US. While the connection between the security incident and the regulatory inquiry is unclear, WLF has previously faced concerns regarding potential conflicts of interest.

(Source：The Block)