Polygon developers angrily denounce Trump family WLFI project: this is "eyewash of eyewash"

Polygon developer Bruno Skvorc recently publicly accused World Liberty Financial (WLFI) on X (formerly Twitter) of freezing its Token and stealing funds, stating that the company is a “scam within a scam” and even comparing it to a “new-age mafia.” This incident quickly sparked widespread follow from the encryption community and investors, and also brought WLFI's asset freezing policy back into the spotlight of controversy.

Developer and investor assets frozen

Skvorc stated that its Token was unjustly frozen by WLFI, and attached a screenshot of the company's email response. In the reply, WLFI stated that the reason for the freeze is that its wallet was marked as “high-risk blockchain risk,” and therefore the assets cannot be unlocked.

He is not the only affected person; including the founder of Tron and Masayoshi Son, who invested 45 million dollars last year, have publicly complained about their assets being frozen without reason.

WLFI and the Trump family's relationship

WLFI has a close relationship with former U.S. President Donald Trump and his family. Trump's entities hold 60% of WLFI shares and receive 75% of the income from token sales. Trump's sons Eric Trump and Donald Trump Jr. are both in the company's management. According to estimates by The New Yorker, the Trump family has made approximately $412.5 million from WLFI.

Criticism and Trust Crisis

Skvorc stated in a post: “This is the mafia of the new era. No one can complain, no one can argue, and no one can sue.”

Masayoshi Son pointed out in an open letter that the unilateral action of freezing investors' assets violates the principles of fairness, transparency, and trust, and could severely undermine the market's confidence in WLFI.

WLFI's response and data disclosure

WLFI responded on X that blocking the wallet is to “protect users and prevent harm,” and announced the data of the blacklisted wallets:

79% related to phishing attacks

50 wallets should be blocked upon user reports of being stolen.

5 wallets have been flagged as high risk and are under review.

1 wallet is suspected of embezzling funds

WLFI stated that it will cooperate with the legitimate owners to verify the control of funds and announce the results after the review is completed.

On-chain Analyst's Perspective

The well-known on-chain detective ZachXBT expressed a certain degree of approval for WLFI's actions but warned of the risks of false reporting blacklists. He pointed out that all top compliance tools currently have flaws, and excessive reliance on them could undermine user trust.

Conclusion

From Polygon developers to well-known investors, the asset freeze controversy of WLFI has triggered a trust crisis in the encryption community. Although WLFI emphasizes that its actions are aimed at protecting users, how to strike a balance between security and user rights will determine its future reputation and survival space in the DeFi field. As of the time of writing, the price of WLFII Token is around $0.19, down more than 67% from its issuance peak.