Trump-Backed $WLFI Faces Fund Diversion Claims and Justin Sun's $1B Freeze Allegation
Bloomberg has reported that proceeds from the private sale of World Liberty Financial ($WLFI), a project reportedly backed by the Trump family, were allegedly funneled to entities linked to its founders. The report detailed that a Trump company specifically received 75% of the sales proceeds. World Liberty Financial has raised over $550 million through two private funding rounds, selling an additional 5.9 billion $WLFI tokens to accredited private investors.
These developments occurred amidst a sharp decline in the $WLFI token's value. The token has reached a new all-time low, marking an 89.3% decrease from its peak. Approximately 80% of early investor holdings in $WLFI remain locked, with a proposal under consideration to extend the lockup period for 62 billion $WLFI tokens to over two years. Some reports also indicate 17 billion $WLFI tokens are locked until 2030. The news surrounding these allegations and the token's performance has coincided with a bearish sentiment, reflected in social posts showing sentiment scores ranging from -17% to -96%.
Adding to the controversies, crypto entrepreneur Justin Sun has alleged that World Liberty Financial illegally froze up to $1 billion worth of his tokens. This reported action occurred after Sun declined to provide additional investment beyond his initial $45 million purchase in the project.
Older ETH Wallets Drained by Code Flaw
Older Ethereum wallets have been successfully exploited, resulting in funds being drained from a number of compromised accounts. The vulnerability stemmed from older wallet implementations using low entropy code, a fundamental design flaw that resulted in cryptographic keys lacking sufficient randomness. This made them susceptible to brute-force attacks or other methods of compromise over time.
While specific figures regarding the total value of drained funds or the precise number of compromised wallets were not publicly detailed, this incident highlights persistent security considerations for users of older digital asset infrastructure.
CISA Warns of Critical Linux Bug Threatening Crypto
The Cybersecurity and Infrastructure Security Agency (CISA) has issued an alert regarding a critical Linux vulnerability, officially designated as the 'Copy Fail' bug. This software flaw has been added to CISA's list of known exploited vulnerabilities, signaling its immediate risk potential. Experts have deemed the vulnerability 'trivially exploitable,' indicating it can be easily leveraged by malicious actors with minimal technical sophistication.
Given that a significant portion of server infrastructure supporting crypto operations runs on Linux, this 'Copy Fail' vulnerability directly impacts critical components such as cryptocurrency exchanges and digital wallet services. Successful exploitation of this flaw enables unauthorized access to these servers, which can result in data breaches and asset theft across various platforms.
Tesla Designates Dogecoin as Sole Crypto Payment Option
Tesla has updated its official website to exclusively list Dogecoin ($DOGE) as its sole cryptocurrency payment option, removing all prior references to Bitcoin ($BTC). This solidifies Dogecoin as Tesla's dedicated digital currency, a policy shift following CEO Elon Musk's long-standing public support for DOGE.