WLFI announced its plan for fund reallocation following a security breach affecting user wallets. The company addressed the issue on Twitter, stating it will distribute funds to users whose wallets were compromised due to phishing attacks or mnemonic phrase leaks. This incident stemmed from a third-party security vulnerability and not from WLFI platform itself or smart contracts. To ensure legitimacy, WLFI has frozen affected wallets, requiring users to verify their identities through KYC. New smart contract logic allows for secure redistribution of funds in bulk. Users who have completed the verification process will receive their funds soon; those who haven’t been contacted or have not finished verification will have their wallets frozen until action is taken. Further information and instructions can be found on the WLFI Help Center.