World Liberty Financial (WLFI), a cryptocurrency project backed by the Trump family, has faced renewed criticism for its handling of user funds following a recent phishing attack. WLFI’s self-proclaimed ‘community governance’ model is under scrutiny as users express concerns about the platform freezing and redistributing their assets, despite claiming to have safeguards in place. The company acknowledged a pre-launch phishing attack that compromised the seed phrases of a limited number of user wallets, stating it was not due to errors with its own platform or smart contracts. WLFI plans to reallocate affected funds for users who completed KYC verification. However, accounts lacking KYC will remain frozen. The platform has previously halted affected wallets in September following the incident, but this raises questions about the platform’s actual control over user funds and transparency in decision-making processes.