WLFI Faces Rug Pull Allegations Amid $75M Borrowing Controversy
World Liberty Financial ($WLFI) faces "rug pull" allegations after reportedly using its own $WLFI tokens as collateral to borrow stablecoins, prompting users to deem the project a scam. WLFI deposited 5 billion $WLFI (5% of its total supply) on the Dolomite protocol, borrowing $75 million in stablecoins (USD1 and USDC). Over $40 million of these funds were transferred to Coinbase Prime accounts. Reports that a Dolomite co-founder also advises WLFI intensified concerns. Critics allege this mechanism creates a "reflexive spiral," where declining $WLFI value could prompt more treasury $WLFI into circulation, further weakening collateral. The borrowing operation led to 100% utilization of the Dolomite USD1 pool, creating negative liquidity and locking depositors' funds. WLFI later repaid $25 million in $USDS.
Tron founder Justin Sun's $WLFI token holdings were reportedly frozen, resulting in over $11 million in personal losses. The project also drew scrutiny over alleged "Trump family" involvement; reports indicate family members were initially listed as co-founders during presale, later changed to "Web3 Ambassadors." Allegations claim the "Trump family" profited approximately $390 million in cash from private token sales. These sales, totaling $550 million, involved selling 100 billion $WLFI at $0.015 and $0.05 across two rounds (October 2024 - March 2025). Furthermore, the WLFI team reportedly removed team information from its website and faced scrutiny over a concurrent token unlock proposal, with reports indicating a forthcoming 16 billion token dump.
The WLFI team denied liquidation risk, citing over $65 million in token buybacks and an upcoming governance proposal for early holder token unlocks. The team also asserts the project's revenue strength.
Despite these assurances, the token plunged 16% to a new all-time low following the borrowing move. $WLFI's price dropped 20.9% over the last seven days and 5.8% in the last 24 hours, reaching $0.078126. The event generated bearish social sentiment, reflected in negative scores such as -88, -94, and -96.
Iran Military Reportedly Uses $XRP for Sanctions Bypass
A report alleges the Iranian military uses $XRP for significant cross-border financial transfers. This move is reportedly designed to bypass international sanctions, with state-linked networks leveraging digital rails for rapid, borderless fund movements. The report indicates these transfers involve millions of dollars, operating outside traditional financial systems subject to global restrictions.
This reported activity led to bearish market perception for $XRP, with social sentiment scores for $XRP dropping to -75, reflecting crypto community concerns regarding its alleged involvement in circumventing international financial regulations.
Franklin Templeton CIO Questions Hyperliquid Risk Management
Franklin Templeton Investment Solutions' Chief Investment Officer (CIO) expressed strong reservations regarding decentralized exchange Hyperliquid's risk management framework. The CIO stated that without improved risk management, maintaining a bullish outlook on the platform is difficult.
The CIO's concern, from a prominent institutional figure, generated bearish sentiment for Hyperliquid, with its social sentiment score dropping to -60. Despite these reservations, the associated $HYPE token demonstrated positive market performance, trading at $42.38. This marks a 5.7% price increase over the preceding 24 hours and an 18.8% increase across the last seven days.