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World Liberty Financial freezes problematic Wallet: Phishing attack meets congressional scrutiny

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【Coin World】World Liberty Financial suddenly announced that it will reallocate user funds and that users must go through the KYC process again.

The cause was a security lapse by a third party - a small batch of wallets was affected by phishing attacks or mnemonic phrase leaks, and the project team froze these problematic addresses in September. They are currently testing new smart contract logic to fundamentally plug the security loopholes in the accounts.

But things are not that simple. This project was previously targeted by Congress, with Senators Warren and Reed questioning whether they might have sold tokens to sanctioned places like North Korea, Russia, and Iran, and specifically requesting an investigation. However, the on-chain analysis has sparked considerable controversy—some blockchain experts have expressed skepticism about the conclusions linking transactions directly to the North Korean Lazarus Group, believing that the evidence chain is not solid enough.

When a security incident meets compliance review, this operation is enough for this project to drink a pot.

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NestedFoxvip
· 4h ago
Now it's both frozen funds and KYC, this is really something... If there are security vulnerabilities, just call them what they are, but it has to happen when Congress is checking the water meter. Reallocation of funds? I just want to know if in the end, anyone will lose everything. The stories the senators are weaving are absurd, but this project is now like "there's no silver here," the more they explain, the worse it gets. I say this is the common fate of Web3 projects—technical failures + political siege, a perfect combination. Finding a reason for phishing attacks is not enough, they have to create an international storm, they really know how to play. When will this compliance review be over, and what will happen to those victimized wallets?
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GateUser-c802f0e8vip
· 4h ago
Alright, this is getting interesting. While blocking fishing exploits, the Congress is knocking on the door. This rhythm is just amazing.
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StrawberryIcevip
· 4h ago
It's freezing and KYC again, this combo is really something... The compliance review isn't done yet and now there's a phishing attack, the timing is just unbelievable.
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SchroedingerGasvip
· 5h ago
Now it's really a problem... Fishing + Congressional review, a double whammy that directly turns the project into a sieve.
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