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World Liberty Financial Linked to Hacked DeFi Project Dough Finance

Key Points:

World Liberty Financial, a Trump family-backed cryptocurrency project, is linked to a previously hacked DeFi platform, Dough Finance.
The project plans to launch a non-transferable governance token, WLFI, which may limit its market liquidity.

World Liberty Financial (WLF), a new cryptocurrency venture linked to the family of former US President Donald Trump, has garnered no shortage of controversy and interest.

World Liberty Financial in the Crosshairs as Security Red Flags Raised

The project, which has been built on Aave’s DeFi platform and on the Ethereum blockchain, has raised several red flags due to its links to the DeFi project Dough Finance, which was hacked for $1.8 million in a flash loan attack this July.

According to CoinDesk, many members of the World Liberty Financial team worked on Dough Finance, which adds a layer of complexity to the project. The World Liberty Financial white paper lists Trump as the “Chief Crypto Advocate” and his sons Eric and Donald Trump Jr. as “Web3 Ambassadors.” It intends to issue a governance token, WLFI, but non-transferable, which could make this token not that liquid in the market.

Scammers Target Rapidly Growing Trump-Linked Crypto Platform

The WLF platform has rounded up more than 230,000 subscribers to its official channel in Telegram, despite the fact that detailed information about the project has not been provided yet. The growth has not gone smooth. As Coincu reported, scammers have hijacked the platform, dangling fake cryptocurrency giveaways before unwary users.

This has been further complicated by the Trump family warning against potential WLF scams, saying they should not be considered valid until the public hears otherwise through their verified channels.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.