WLFI is preparing to reallocate wallets after the phishing attack, users must complete KYC

World Liberty Financial (WLFI), a crypto project linked to the Donald Trump family, is preparing to reallocate user wallets after more than two months since a phishing attack occurred prior to its launch. WLFI stated that only users who have completed KYC verification will receive new wallets; unverified wallets will remain frozen. The company affirmed that the incident did not originate from WLFI’s platform or smart contract, but from a third-party security vulnerability that exposed seed phrases and enabled phishing.

Since September, WLFI has frozen affected wallets, verified ownership, and updated the smart contract to restore funds safely. The reallocation process has been tested and is ready for deployment. WLFI emphasized that its top priority is user protection, not blacklisting. The incident highlights the growing need for strong verification and robust security as digital asset platforms expand.