Source: CoinMarketCap
The DeFi platform is one among many that rely on a fully-reserved and fiat-backed mint-and-redeem stablecoin mechanism. Evidence of this is found in monthly reserve attestations, reserve composition reports, institutional partnerships, and its white paper dubbed the “Gold Paper”.
WLFI attack history and developments
Notably, this is the fourth attack aimed at the World Liberty Financial platform in the last two years. In July 2024, Dough Finance, a previous project related to the DeFi platform, lost $2.5 million to hackers. And in September 2025, “sweeper bots” exploited a vulnerability related to Ethereum’s EIP-7702 upgrade, draining wallets of millions in WLFI tokens. Two months later, a phishing campaign compromised user wallets, and the platform was forced to burn and re-allocate $22 million worth of stolen tokens.In more progressive developments, World Liberty Financial launched the World Liberty Forum, which aims to participate in shaping the cryptocurrency regulatory playground.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
About Author
