Justin Sun’s Wallet Frozen Amidst Security Concerns in WLFI Project

Polygon developer Bruno Skvorc alleges that the World Liberty Financial (WLFI) project froze his wallet without justification, accusing them of stealing funds and citing security concerns. WLFI defended its actions by claiming to have frozen 272 wallets due to phishing and security risks, including one belonging to Justin Sun. Skvorc’s complaint stems from WLFI restricting access to his tokens after a compliance notice flagged his wallet as high-risk. The notice cited several reasons for the restriction, including past use of Tornado Cash, indirect exposure to sanctioned platforms, and interaction with potentially fraudulent dashboards. He expressed frustration regarding his locked funds and difficulty pursuing legal action due to the project’s political connections. Independent blockchain investigator ZachXBT highlighted a concerning trend of automated compliance tools falsely labeling legitimate addresses as ‘high risk,’ thereby creating unreliable risk assessments. WLFI countered these allegations, asserting that their actions are solely intended for user protection and not silencing normal activities. Notably, prominent crypto figure Justin Sun confirmed his wallet was also included in the blacklisted wallets, clarifying that he had only used his account for test transactions and internal transfers with minimal amounts. He insists that these actions did not influence market conditions and urges WLFI to restore access to all improperly frozen assets. The incident has sparked debate about the role of automated compliance tools in crypto projects, particularly when their decisions raise concerns regarding potential bias and unfairness.