CMC News

$WLFI Token Faces Freeze Controversy Amid 40% Crash

$WLFI is attracting criticism after #WorldLibertyFinancial froze multiple user wallets following the token's 40% price drop since launch. High-profile investors report blocked access to millions in tokens despite no selling activity.

#Blockchain analytics platforms Nansen and Arkham Intelligence flagged the transactions as suspicious selling activity. One investor reports frozen tokens after receiving an email citing "high risk blockchain exposure" as the reason for account restrictions. The user expresses frustration at post-distribution risk assessments that occurred after funds were already accepted.

Community members question why risk evaluations didn't happen during the initial funding phase. Some observers suggest the freezes represent attempts to prevent sell pressure rather than legitimate security measures.

The project burned 47 million tokens on Wednesday to reduce circulating supply, but the deflationary mechanism failed to halt price declines. $WLFI dropped another 18% following the burn event, reaching total losses of 41% since Monday's launch.

ZachXBT suggests some frozen accounts may represent false positives in the risk assessment system. The crypto investigator expressed hope for resolution while acknowledging the project's aggressive approach to wallet restrictions.

World Liberty Financial's actions draw comparisons to traditional banking deplatforming practices. The controversy highlights tensions between regulatory compliance and user access rights in politically-affiliated cryptocurrency projects. #Debanking #Politics