WLFI's $22M Token Destruction: Will Trump-Endorsed Cryptocurrency Restore Confidence?
- WLFI burned 166.667 million tokens ($22.14M) from hacked wallets, reallocating them to secure recovery addresses via emergency transactions. - The breach stemmed from phishing and third-party lapses, not smart contract flaws, with frozen wallets tested for months before reallocation. - The burn-and-reallocate mechanism, designed for lost access or attacks, highlights WLFI's focus on compliance and fund protection during recovery. - The incident intensifies scrutiny over WLFI's regulatory compliance and t
World Liberty Financial (WLFI), a cryptocurrency initiative supported by the Trump family, carried out an urgent intervention on November 20, destroying 166.667 million
The emergency protocol was created to handle two main situations: investors losing access to their wallets before their tokens were vested, or bad actors exploiting weaknesses to obtain WLFI tokens
From the outset, WLFI’s token model included a burn-and-redistribute feature, empowering the deployer to retrieve tokens from breached wallets and allocate them to verified users via secure processes
Users whose wallets are still frozen and have not been verified can request recovery through WLFI’s support center, but must first complete KYC verification to restore access
The destroyed tokens account for about 1.7% of WLFI’s total token supply, according to on-chain tracking by Emmett Gallic
WLFI’s governance token, which was introduced earlier this year, has been criticized for its intricate token structure and perceived lack of openness. The recent security breach and the project’s handling of it are expected to be a significant test of its operational reliability, especially given its ties to prominent political figures
---
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.
You may also like
Stablecoin Surge Compels Basel to Address Regulatory Inflexibility
- Global regulators, led by the Basel Committee, face pressure to revise strict 1,250% capital requirements for stablecoins as their role in institutional finance expands. - The U.S. Fed, Bank of England, and EU reject current rules, citing impracticality, while stablecoins like USDT/USDC now underpin regulated crypto derivatives and yield products. - Basel chair Erik Thedéen acknowledges the need for a "different approach" to risk-weighting stablecoins, which now enable institutional access to crypto mark
Markets Trapped Between Fear and Optimism for the Future
- U.S. markets face volatility as delayed September NFP data creates uncertainty over Fed rate-cut timing, with crypto and equities reacting sharply. - Bitcoin erased 2025 gains amid waning sentiment and liquidity strains, while AI stocks like Nvidia falter on profitability concerns. - Gold struggles near $4,080 as hawkish Fed signals boost the dollar, contrasting with Kraken's $20B IPO optimism in crypto diversification. - Upcoming NFP report and Fed minutes could determine market direction, balancing sho
Zcash (ZEC) Price Rally: Renewed Interest in Privacy Coins Fueled by Institutional Engagement and Clearer Regulations
- Zcash (ZEC) surged 10.72% to $683.14 on Nov 15, 2025, driven by institutional adoption and regulatory clarity. - Major investors like Cypherpunk ($146M) and Winklevoss ($58.88M) boosted ZEC's market cap to $7.2B, surpassing Monero. - U.S. Clarity/Genius Acts legitimized Zcash's optional-privacy model, distinguishing it from untraceable coins amid regulatory scrutiny. - Price volatility and technical indicators suggest potential for $875 if institutional demand and regulatory support persist. - Zcash's st
Ethereum Updates Today: Can Bulls Defend the $2,850 Level or Will Bears Take Over?
- Ethereum's $3,000 price tests $2,800–$2,950 support zone amid bullish wedge patterns and bearish breakdown risks. - Analysts split: Erik warns $2,850 break could trigger $800–$1,000 drop, while Matt Hughes calls $2,870 pullback a normal correction. - Technical indicators show mixed signals - ETH above 100-day EMA but below 50-day EMA, with Bollinger Bands framing $2,850–$3,150 key levels. - On-chain data suggests potential "liquidity reset" could precede bullish expansion, but delayed recovery risks prol
Trending news
MoreCrypto prices
More
