Liberty

ZachXBT

Polygon

World Liberty Financial

Tornado

<ul>
 <li>A Polygon developer accused Trump-linked WLFI of freezing his wallet and withholding his tokens without valid justification.</li>
 <li>WLFI defended freezing 272 wallets citing phishing and security concerns, including one belonging to Justin Sun.</li>
</ul>
A Polygon developer accused Trump-linked WLFI of freezing his wallet and withholding his tokens without valid justification. <a href="https://www.ethnews.com/wlfi-price-drops-14-as-trading-volume-doubles-amid-exchange-listings/" rel="noopener noreferrer nofollow">WLFI</a> defended freezing 272 wallets citing phishing and security concerns, including one belonging to Justin Sun.
Bruno Skvorc, who holds a developer relations position at Polygon, stated that <a href="https://www.ethnews.com/wlfi-rally-meets-eip-7702-phishing-risk-amid-heavy-trading/" rel="noopener noreferrer nofollow">WLFI</a> prevented access to his tokens without providing a valid justification. He shared correspondence from the project’s compliance team, which classified his wallet as high risk.
<blockquote class="twitter-tweet">
 I just got a reply from <a href="https://twitter.com/worldlibertyfi?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@worldlibertyfi</a>. TLDR is, they stole my money, and because it's the <a href="https://twitter.com/POTUS?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@POTUS</a> 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. <a href="https://twitter.com/zachxbt?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@zachxbt</a> THIS is the scam of… <a href="https://t.co/m6NP9VmHfd" rel="noopener noreferrer nofollow">pic.twitter.com/m6NP9VmHfd</a>
 — Bruno Skvorc (@bitfalls) <a href="https://twitter.com/bitfalls/status/1964213177245159656?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">September 6, 2025</a>
</blockquote>

The compliance notice cited three specific reasons for restricting the wallet. These included past use of a cryptocurrency mixing service called <a href="https://www.ethnews.com/u-s-ends-appeal-against-coin-center-securing-tornado-cash-sanctions-protection/" rel="noopener noreferrer nofollow">Tornado Cash</a>. The notice also referenced indirect exposure to platforms currently under international sanctions. A final reason involved interaction with a dashboard later identified as fraudulent.
Skvorc expressed frustration regarding the situation through social media channels. He indicated that he and several other investors had their tokens locked immediately after purchase. 
None of the scheduled token releases, which were promised to be 20% initially, had been distributed to these accounts. He characterized the actions as equivalent to theft and expressed concerns about seeking legal recourse due to the project’s political connections.
An independent blockchain investigator known as ZachXBT provided analysis of the situation. He explained that automated compliance tools frequently generate incorrect risk assessments. 
ZachXBT described instances where legitimate exchange addresses and smart contracts received erroneous risk classifications. He noted that some addresses were flagged merely for being several transactions removed from potentially problematic addresses.
<blockquote class="twitter-tweet">
 The issue is majority of the time “high risk” exposure is incorrect so you cannot become reliant on compliance tools as a team.
 Recently I helped a team manually review addresses for a presale because popular compliance tools labeled addresses as “high risk” and were flagged to…
 — ZachXBT (@zachxbt) <a href="https://twitter.com/zachxbt/status/1964228364908319129?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">September 6, 2025</a>
</blockquote>

World Liberty Financial issued a statement defending its compliance actions. The organization stated it had blacklisted 272 wallets for security reasons. According to their report, approximately 215 wallets showed connections to phishing activities. Another 50 wallets appeared to have been compromised through support channel exploits.
<blockquote class="twitter-tweet">
 We’ve heard community concerns about recent wallet blacklists. Transparency first: WLFI only intervenes to protect users, never to silence normal activity. <img src="https://s.w.org/images/core/emoji/16.0.1/72x72/1f985.png" alt="🦅" style="height: 1em; max-height: 1em;">
 — WLFI (@worldlibertyfi) <a href="https://twitter.com/worldlibertyfi/status/1964081164408250558?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">September 5, 2025</a>
</blockquote>

Prominent cryptocurrency figure <a href="https://www.ethnews.com/justin-sun-bets-100m-on-trump-token-and-tron-integration-targets-ethereum-dominance/" rel="noopener noreferrer nofollow">Justin Sun</a> confirmed his wallet was among those restricted. Sun clarified that his wallet activity involved only test transactions and internal transfers.
<blockquote class="twitter-tweet">
 Our address only carried out a few general exchange deposit tests with very small amounts, followed by an address dispersion. No buying or selling was involved, so it could not possibly have any impact on the market.
 — H.E. Justin Sun <img src="https://s.w.org/images/core/emoji/16.0.1/72x72/1f468-200d-1f680.png" alt="👨‍🚀" style="height: 1em; max-height: 1em;"> (Astronaut Version) (@justinsuntron) <a href="https://twitter.com/justinsuntron/status/1963695382996894000?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">September 4, 2025</a>
</blockquote>

He emphasized these actions could not have influenced market conditions. Sun described token ownership rights as fundamental and urged the project to restore access to all improperly frozen assets.
The post <a href="https://www.ethnews.com/justin-suns-wallet-frozen-by-trump-familys-crypto-project/" rel="noopener noreferrer nofollow">Justin Sun’s Wallet Frozen By Trump Family’s Crypto Project</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.

Justin Sun’s Wallet Frozen By Trump Family’s Crypto Project

ETHNews

Other articles published on Sep 6, 2025

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