The exact playbook Sam Bankman-Fried used with FTX is the same structure the WLFI team is using.
> Create or hold a large amount of your own token
> Use it as collateral
> Borrow real liquidity against it.
And we all know how that ended:
> Sam in jail
> FTX bankrupt
That's the risk with this kind of structure when the token price doesn’t hold.
World Liberty Financial (worldlibertyfinancial.education) WLFI Preisverlauf USD
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Kaufen und verkaufen Sie WLFI einfach und sicher auf BitMart.Verdienen
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TLDR:
If they sell $WLFI, it’s straight-up a sc@m.
So they lock it up somehow and borrow $USDC against it to make it look like a “legit sc@m.”
Expect more projects to start doing this going forward, if they aren’t already.
🚨JUST IN: @justinsuntron says the $WLFI team treated “the crypto community as a personal ATM,” citing the ongoing scandal and the project’s blacklisting of his $WLFI wallet in 2025. https://t.co/uNffJLGLjs
Guys, it's not looking good for WLFI & assets involving them
I know I've mentioned USD1 before this, but I think with this fiasco it's best to shift them to other stablecoins for now
Best to avoid anything involving WLFI & Trump family now. https://t.co/pddX5wW42U
I have always been a staunch supporter of President Trump and his crypto-friendly policies.
As an early backer of World Liberty Financial, I invested a substantial amount of capital in the project's early stage because I believed in the vision it presented to the public: a DeFi platform that promotes financial freedom, removes intermediaries, and brings the benefits of decentralized finance to ordinary people.
However, what was never disclosed to me or any investor is that World Liberty secretly embedded a backdoor blacklist function in the smart contract deploying the WLFI token. This function grants the company unilateral authority to freeze, restrict, or even effectively confiscate token holders' property rights without notice, reason, or any remedy.
This is the opposite of decentralization. It is a trap masquerading as a doorway.
I hereby condemn the ongoing token scandals generated by the bad actors within WLFI.
I am both the first and the biggest victim—back in 2025, they illegally blacklisted my WLFI token wallet, an act that violates fundamental investor rights and the fairness principles of blockchain.
All actions taken by the WLFI team—extracting fees from users, secretly embedding backdoors to control user assets, freezing investors' funds without disclosure or due process, treating the crypto community as a personal cash register—are improper and have never been authorized through any fair, transparent, or good-faith community governance process.
The governance votes cited to legitimize the above actions were not conducted through fair or transparent procedures. Critical information was concealed from voters, substantive participation was limited, and the outcome was predetermined. These votes represent not the will of the community but the will of the designers.
These actions are unrelated to me and to the investors who believed in the project's promises. We strongly oppose each and every one of the aforementioned actions.
The WLFI team's conduct is eroding the community's trust in the project. Unlock the token, maintain transparency for the community. Let us build with integrity, not with misconduct.
