Following a pre-launch security breach affecting a small subset of user wallets, World Liberty Financial (WLFI) released a detailed update outlining the incident and recovery process. The company confirmed that external phishing attacks and third-party security lapses were responsible, not vulnerabilities within their platform or smart contracts. Prior to launching, a limited number of wallets were compromised through these tactics. Upon identification, WLFI froze impacted wallets, verified user ownership, and began developing new on-chain logic to safely restore funds. 1/ The company has since implemented new smart contract logic for secure fund reallocations and integrated KYC checks for all affected users. These measures ensure only legitimate owners receive their funds. 2/ WLFI is now initiating the re-allocation of funds to verified users, with those who have already completed KYC checks receiving their funds shortly. Users yet to verify or complete these steps will see their wallets remain frozen. 3/ The company acknowledges this delay and emphasizes its commitment to user safety, maintaining compliance with regulations. WLFI will continue to focus on the platform’s development, aiming for a robust and secure future.