Developer Alleges Trump-Linked WLFI Froze His Tokens Amid Compliance Tool Flags, Justin Sun Also Reports Freeze

• Tokens locked by project compliance: wallets flagged as “high risk” were denied unlocks.

• Automated compliance tools can flag addresses for remote interactions like mixers or sanctioned exchanges.

• Reported losses include multiple investors and a high-profile Justin Sun allocation frozen after a $9M flagged transfer.

WLFI token freeze: World Liberty Financial locked wallets flagged as high-risk; learn why tokens were frozen and what affected investors can do next.

A crypto developer says Trump-linked crypto project WLFI froze his tokens and refused to unlock them, calling it “the new age mafia.”

A crypto developer has accused World Liberty Financial (WLFI), a crypto project described as Trump-linked, of seizing funds by refusing to unlock token allocations from flagged wallets. Multiple investors report 100% lockups that prevent withdrawals or transfers.

In a Saturday post on X, Polygon DevRel Bruno Skvorc published an email from WLFI’s compliance team stating his wallet was “high risk” due to prior blockchain exposure. WLFI’s compliance response said tokens would remain locked and not be released.

Skvorc wrote: “TLDR is, they stole my money. And because it’s the @POTUS family, I can’t do anything about it. This is the new age mafia.” He also said he is one of six investors subject to full lockups since issuance.

Bruno claims WLFI stole his funds. Source: Bruno Skvorc

Related: Whales lose millions on Trump-linked WLFI’s 40% dip, despite 47M burn

What caused the WLFI token freeze?

WLFI token freeze was triggered after compliance tools flagged several wallets as “high risk” for past interactions with crypto mixers, exchanges or blacklisted dashboards. Project compliance teams then applied automatic or manual lockups to prevent distribution of allocated WLFI tokens.

How do compliance tools misclassify addresses?

Onchain sleuth ZachXBT explained that automated analytics can trace indirect hops and label addresses risky for unrelated activity. These systems may flag wallets that once interacted with mixers like Tornado Cash, or had indirect links to sanctioned services, producing false positives.

Why are high-profile wallets like Justin Sun’s frozen?

Tron founder Justin Sun reported his WLFI allocation frozen after blockchain trackers flagged a $9 million transaction. WLFI blacklisted the wallet citing compliance alerts. Sun called the decision “unreasonable,” arguing it contradicts blockchain principles and that tokens should be inviolable.

Who else is affected and what are the reported impacts?

Bruno Skvorc and at least five other investors say they face 100% token lockups from day one. Investors report loss of liquidity and inability to execute expected token distributions. Onchain analysis shows flags traced to past use of Tornado Cash, links to exchanges like Garantex and Netex24, and interactions with blacklisted dashboards.

Frequently Asked Questions

Are automatic compliance tools reliable for token distributions?

Automated compliance tools help flag risk but can generate false positives from indirect onchain interactions. Manual review is essential to correct misclassifications and avoid unjustified lockups.

What should an investor do if their WLFI allocation is locked?

Collect transaction records, request a manual review from the project, and consider independent onchain analysis. Publicly documenting the issue can also pressure projects to resolve disputes.

Key Takeaways

• WLFI token freeze: Project compliance locked wallets flagged as high-risk, stopping unlocks and transfers.
• Automated flags can err: Tools often trace indirect activity, causing false positives that require human review.
• Action steps: Document evidence, request manual review, and obtain independent onchain verification to contest freezes.

Conclusion

The WLFI token freeze highlights the tension between automated compliance and token holder rights. World Liberty Financial’s use of risk flags has left investors like Bruno Skvorc and Justin Sun publicly contesting lockups. A better blend of automated screening and transparent manual review could reduce wrongful freezes and restore trust.