WLFI

Phishing Attack & Private Key Leakage

Estimated loss

—

VERDICT —OUT OF SCOPE

Root cause is private-key / signer compromise — the on-chain contract behaved exactly as written. No pre-deployment source audit or bytecode review reaches the key-custody perimeter; this is operational-security territory (HSM/MPC hygiene, key rotation, hot-wallet isolation). Bytecode would show nothing wrong.

▰ METHOD

PRIVATE KEY

PRIVATE-KEY

Root cause

Root-cause analysis not yet published. The incident description below contains all currently available signal — review the attack transaction directly for definitive forensics.

Forensic narrative

According to a WLFI announcement, prior to the platform’s official launch, some user wallets were compromised due to phishing attacks or mnemonic phrase leaks. WLFI emphasized that the incident was not caused by any platform or smart contract vulnerability, but originated from third-party security issues. The team has developed new smart contract logic that allows assets to be reassigned to secure new wallets after completing KYC verification. Wallets that have not submitted a request or failed verification will remain frozen, though users can initiate the recovery process through customer support. According to Emmett Gallic, World Liberty Fi burned a total of 166.67 million WLFI tokens (worth approximately $22.14 million) from a suspected compromised wallet and reallocated an equal amount of tokens to a new secure address. Attack method (per SlowMist): Phishing Attack & Private Key Leakage. Reported loss: -.

Primary source

https://x.com/worldlibertyfi/status/1991243561715519933 ↗

Sourced from

slowmist

Technical record