World Liberty Financial Reveals the Reason for Blacklisting 272 Wallets

World Liberty Financial has confirmed the blacklisting of 272 wallets and explained the reasons behind this move. This action comes in the context of this DeFi project also blacklisting the wallet of TRON founder, Justin Sun, due to allegations that he liquidated his coins to investors. World Liberty Financial Adds 272 Wallets to the Blacklist In a post on X, the DeFi project stated that they are doing this to protect users and not to hinder normal operations. The research team confirmed that they have blacklisted these wallets over the past few days, while noting that they are doing this solely to prevent damage while investigating and assisting affected users. World Liberty Financial continues to analyze in detail 272 cryptocurrency wallets that they have blacklisted. They have blocked 215 wallets (79%) among these due to phishing attacks. Their team stated that they intervened to prevent hackers from withdrawing funds and are currently working with legitimate owners to safeguard the assets. Furthermore, 50 (18.4%) of wallet holders have reported being compromised through fake support groups, leading to the blacklisting of wallets to help holders of this token recover their funds. The DeFi project has blacklisted five wallets due to high-risk concerns, while one of the 272 wallets is under review for embezzling funds from other holders. Notably, this development comes as World Liberty Financial decides to blacklist Justin Sun's wallet due to allegations that he is dumping his tokens to investors. The founder of TRON has denied these accusations, stating that the group has "unreasonably" frozen his tokens. In this context, the WLFI token has recovered after the price drop earlier this week. Data from TradingView shows that this token is currently trading at around $0.1966, up about 8% today.

Previously, the World Liberty Financial token reached a market capitalization of 7 billion dollars when it launched on September 1. The token has fallen to an all-time low of 0.1632 dollars amid a wave of sell-offs from early investors to take profits. ZachXBT Praises WLFI Team Online detective ZachXBT praised the World Liberty Financial team after a statement from one of the token holders whose wallet address from the DeFi project was blacklisted due to high-risk levels.

In a post on X, he stated that he was very pleased to see this group taking a more proactive approach than other groups, such as Circle, as this move will ultimately benefit the victims. However, he noted that the team really needs to be cautious, as putting false positive results on the blacklist could cause irreparable damage to their reputation. ZachXBT added that the difficult part is finding a balance between these two factors, and most teams fail to do that.