WLFI Freezes Investor Tokens, Raising Compliance Concerns
- WLFI blocks token withdrawals citing high risk
- Crypto compliance tools spark controversy
- WLFI faces criticism for alleged political use of the project
The cryptocurrency project World Liberty Financial (WLFI), linked to US President Donald Trump, has returned to the spotlight after reports of investors' tokens being blocked. One case that drew attention was that of Bruno Skvorc, a Croatian developer with a background in Ethereum 2.0 and founder of RMRK, who claimed to have his wallet frozen by WLFI's compliance team.
Skvorc explained that his wallet was accepted for token deposits, but later deemed "too risky" for withdrawals. He shared conversations with the WLFI team in which his request was denied, despite having no direct history of rule violations. The developer described the behavior as a "mafia model," saying that complaints have no effect against the project, allegedly shielded by political connections. According to him, at least five other investors face a similar situation.
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
The situation has raised criticism of the use of automated screening tools adopted by many crypto projects. Analyst ZachXBT commented that these systems often classify portfolios as "high risk" for trivial actions, such as using DeFi apps or interacting with exchanges that later faced sanctions.
In Skvorc's case, the alerts included old transactions involving Tornado Cash, as well as possible indirect links to sanctioned platforms like Garantex and Netex24. While no violations were direct, these indications were enough for WLFI to freeze his tokens with no release date set.
This episode is not isolated. WLFI had already faced criticism after a sharp 40% drop in the token's price, which caused significant losses to large investors, even after the burning of 47 million tokens in an attempt to sustain the asset's value.
The new controversy reignites the debate over how certain cryptocurrency projects manage their relationships with investors, especially when political figures are involved. Skvorc believes the lack of transparent oversight can leave developers and users vulnerable, with no recourse to recover their assets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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