Overview
- WLFI executed a Nov. 19 emergency burn-and-reallocate, removing 166.667 million WLFI (about $22.14 million) from compromised wallets and issuing the same amount to recovery addresses.
- The recovery leverages a prebuilt smart-contract function intended for lost-access or exploit scenarios, enabling controlled transfers to verified recipients.
- Unverified wallets remain frozen, with affected users instructed to complete re-KYC and submit new addresses through the project’s help center to receive funds.
- WLFI attributes the pre-launch compromises to phishing and exposed seed phrases tied to third-party lapses, with some cases linked to September’s EIP-7702 incidents after 272 wallets were frozen.
- Arkham and independent analyst Emmett Gallic confirmed matching deployer-to-reserve transactions, as senators Elizabeth Warren and Jack Reed separately sought federal inquiries into claims of sales to sanctioned-linked wallets.