Polygon developer calls World Liberty Financial the ‘scam of all scams”
Polygon developer Bruno Skvorc lashed out at World Liberty Financial (WLF) on Saturday, accusing the firm of stealing his funds. In a post on X, Skvorc wrote:
“…they stole my cash, and since it’s the @POTUS household, I can’t do something about it.”
Skvorc was one of the lots of of customers, together with Tron founder and WLF investor Justin Sun, whose tokens had been frozen by WLF.
The decentralized finance (DeFi) agency is intently linked to the U.S. President Donald Trump and his household. A Trump entity owns 60% of WLF and earns 75% of income from token sale. Trump’s sons, Eric and Donald Trump Jr. are half of the agency’s administration. According to an estimate printed by The New Yorker in August, the Trump household earned about $412.5 million from WLF.
Skvorc hooked up the e-mail response he acquired from WLF to his X submit, which famous that the agency would “not be capable of unlock” his tokens. The agency justified the freezing of the tokens “attributable to the high threat blockchain publicity related to” Skvorc’s pockets.
Polygon developer likened WLF to ‘new age mafia’
Since WLF began buying and selling on Sept. 1, the protocol has blocked not less than 272 wallets. Denouncing the protocol as “the rip-off of all scams,” Skvorc famous:
“This is the new age mafia. There is nobody to complain to, nobody to argue with, nobody to sue. It simply… is.”
Skvorc is much from being the just one to criticize WLF’s freezing of property. In a protracted X post on Friday, Sun, who invested $45 million in WLF final 12 months, stated that his property had been “unreasonably frozen.”
Additionally, Sun famous that an important monetary model should be rooted in “equity, transparency, and belief.” And not “on unilateral actions that freeze investor property,” he wrote, including:
“Such measures [freezing user assets] not solely violate the authentic rights of buyers, but additionally threat damaging broader confidence in World Liberty Financials.”
The WLFI token is buying and selling at round $0.19 at the time of writing—greater than 67% beneath its all-time-high on launch day.
WLF has doubled down on its transfer to freeze property
In an X post WLF defended its resolution to blacklist person wallets, stating:
“WLFI solely intervenes to guard customers, by no means to silence regular exercise.”
The agency additional added that the transfer was made “solely to forestall hurt” whereas it investigated and helped impacted customers.
WLF additionally shared a breakdown of the blacklisted wallets, which confirmed that 79% of the blocked wallets had been linked to a phishing assault. The agency claimed that it had preemptively frozen the 215 wallets to forestall hackers from draining the funds. WLF stated it’s working with the rightful proprietor of the wallets to safe their respective property.
The breakdown additionally revealed that WLF blocked 50 wallets at the house owners’ request after they reported that their wallets had been compromised. Only 5 wallets had been flagged for high-risk publicity, whose safety dangers are at the moment below overview, as per WLF.
Additionally, WLF blocked one pockets for suspected misappropriation of different customers’ funds. The agency stated it would proceed to work with customers to confirm management and safe funds, and share clear outcomes for every class of wallets as soon as critiques are concluded.
On-chain sleuth ZachXBT praised WLF’s method however cautioned in opposition to the reputational dangers of blacklisting false positives. ZachXBT famous:
“The concern is majority of the time “high threat” publicity is wrong so you can not turn into reliant on compliance instruments as a crew.”
ZachXBT wrote that all of the prime compliance instruments are flawed, and WLF is doing a greater job than others like Circle, however warned that the majority groups fail to search out the proper stability.
The submit Polygon developer calls World Liberty Financial the ‘scam of all scams” appeared first on CryptoSlate.
