World Liberty Financial (WLFI) has issued a detailed update following a pre-launch security incident that affected a small subset of user wallets. The company confirmed that attackers accessed these wallets through external phishing and third-party security lapses, not through any flaw in WLFI’s platform or smart contracts.
According to the team, the breach occurred before WLFI formally launched. Once the issue was identified, WLFI froze impacted wallets, verified ownership, and began developing new on-chain logic to safely restore funds to users.
1/ Prior to WLFI’s launch, a relatively small subset of user wallets were compromised via phishing attacks or exposed seed phrases.
Since then, we’ve tested new smart contract logic to safely reallocate user funds and verified users’ identity via KYC checks.
Shortly, users who…
— WLFI (@worldlibertyfi) November 19, 2025
KYC Verification and Smart Contract Safeguards
In its latest communication, WLFI emphasized that every affected user was required to re-complete KYC checks to confirm identity before receiving a new wallet. The company said these measures were necessary to ensure that funds were returned only to legitimate owners.
At the same time, engineers built and tested a new smart contract system designed to handle bulk reallocations securely. The process took longer than initially expected, but WLFI said prioritizing user protection was more important than rushing the fix.
Fund Recovery Begins for Verified Users
Reallocation of user funds will begin shortly for all individuals who completed the required verification process. Wallets belonging to users who have not yet reached out or completed the steps will remain frozen, though WLFI noted these users can still begin the verification workflow through its help center.
The company thanked its community for patience throughout the investigation and restoration period, reaffirming its commitment to safeguarding user assets while maintaining regulatory compliance.
WLFI concluded the update by stating it is now fully focused on moving forward with the platform’s next stages of development.
