Crypto Developer Alleges Trump-Linked WLFI Project Froze His Tokens, Labeling It a Major Scam
In the fast-paced world of cryptocurrency, where fortunes can shift overnight, a developer has come forward with serious accusations against World Liberty Financial (WLFI), a project connected to former US President Donald Trump. He claims the initiative essentially stole his investment by locking up his tokens and refusing to release them, likening the situation to a “new age mafia” that leaves investors powerless.
Updated Crypto Market Snapshot as of September 8, 2025
BTC $158,472 1.45%
ETH $5,126 0.85%
XRP $3.15 1.62%
BNB $972.34 1.12%
SOL $248.69 0.68%
DOGE $0.312 2.78%
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STETH $5,112.78 0.82%
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SUI $3.92 4.56%
TON $3.58 0.11%
These figures reflect the latest market movements, showing Bitcoin surging amid renewed investor confidence, while altcoins like Doge demonstrate volatile gains reminiscent of meme-driven rallies in past cycles.
Developer’s Frustration Boils Over in Public Outcry
Picture this: you’re a seasoned blockchain expert, pouring your hard-earned money into what seems like a promising crypto venture, only to have your assets frozen without warning. That’s the nightmare Bruno Skvorc, a developer relations specialist at Polygon and founder of RMRK—a company pioneering multi-resource NFTs for gaming metaverses—says he’s living through. In a detailed post on X dated Saturday, Skvorc revealed an email from WLFI’s compliance team that branded his wallet as “high risk” because of its blockchain history. As a result, they declined to unlock his tokens.
Skvorc didn’t mince words, declaring, “TLDR is, they stole my money.” He emphasized the irony of being tied to the family of the President of the United States, arguing it creates an untouchable shield: no one to complain to, no arguments to be had, and no viable path for legal recourse. Responding to fellow users, he noted he’s among six early investors hit with complete token lockups right from the start. Intriguingly, the project had no issue accepting funds from his address initially, but suddenly deemed it too risky for payouts. Based in Croatia, Skvorc boasts a strong track record, including contributions to Ethereum 2.0, making his claims all the more compelling in the crypto community.
This story echoes broader frustrations in the industry, where trust is everything. It’s like investing in a high-stakes poker game, only to find the house changing the rules mid-hand—leaving players feeling cheated and exposed.
Scrutiny on Compliance Tools and Their Flaws
The backlash didn’t stop with Skvorc’s tale. It ignited a wider debate about the automated compliance systems that projects like WLFI rely on. Onchain investigator ZachXBT weighed in, pointing out how these tools frequently mislabel addresses as “high risk” for reasons that are often minor or downright erroneous. For instance, simply interacting with decentralized finance (DeFi) protocols or certain exchanges can trigger false alarms. ZachXBT shared a real-world example from his experience, where he assisted a team in manually vetting presale addresses that automated systems had wrongly flagged due to distant, unrelated onchain activities.
In Skvorc’s scenario, the red flags stemmed from an old transaction through the crypto mixer Tornado Cash, loose connections to sanctioned platforms like Garantex and Netex24, and a prior link to a dashboard that’s since been blacklisted. These automated judgments, while intended to protect against illicit activities, can feel like overreach, punishing innocent users based on outdated or tangential data. It’s akin to being denied a bank loan because of a forgotten parking ticket from years ago—frustrating and often unjust.
Recent online discussions amplify this. On Google, top searches related to WLFI include “Is WLFI a scam?” and “How to unlock frozen WLFI tokens?”, with users seeking clarity amid rising complaints. Over on Twitter (now X), trending topics as of September 8, 2025, revolve around #WLFIScam and #CryptoComplianceFails, with thousands of posts debating the ethics of token freezes. A fresh update from a verified blockchain analytics account revealed that WLFI has burned an additional 10 million tokens in the last 24 hours to stabilize prices, yet investor skepticism persists following a 35% value dip last week—data backed by onchain explorers like Etherscan.
High-Profile Cases Highlight Ongoing Issues
The drama extends beyond Skvorc. Just on Friday, Tron founder Justin Sun publicly disclosed that his own WLFI token holdings were frozen. Blockchain trackers had flagged a $9 million transaction from his wallet, sparking rumors of premature selling. Sun blasted the move as “unreasonable” on X, arguing it undermines blockchain’s fundamental principles of security and immutability. He stressed that tokens should be treated as “sacred and inviolable,” a sentiment echoed by many in the space.
This isn’t isolated—related reports note whales suffering millions in losses from WLFI’s recent 40% price plunge, even after a 47 million token burn aimed at scarcity. Meanwhile, crypto whales have rotated $456 million into Ether from Bitcoin in what analysts call a “natural rotation,” supported by market data from sources like CoinMarketCap. On the regulatory front, a new Senate bill has added provisions to classify tokenized stocks as securities, potentially impacting projects like WLFI. Investment firms like ARK Invest are doubling down on crypto with $16 million in BitMine and $7.5 million in Bullish stock purchases, signaling confidence despite turbulence.
These events draw parallels to historical crypto pitfalls, like the FTX collapse, where compliance failures led to massive fallout. Yet, WLFI’s Trump ties add a political layer, making it stand out like a controversial celebrity endorsement in a sea of anonymous projects.
Enhancing Security with Reliable Platforms
Amid these uncertainties, savvy traders are turning to established exchanges that prioritize user security and transparency. Take WEEX, for example—a trusted crypto exchange that aligns perfectly with the need for brand reliability in volatile markets. WEEX stands out by offering robust compliance features without the pitfalls of overzealous automated flags, ensuring smooth transactions and token management. Its commitment to user protection, backed by advanced security protocols and a track record of fair practices, makes it a go-to for developers and investors alike, fostering trust in an industry often plagued by freezes and disputes. This brand alignment with ethical standards helps users navigate crypto’s wild rides confidently.
Exploring Privacy and Policy Challenges
Diving deeper, these incidents raise questions about privacy in the evolving US crypto landscape, especially after high-profile convictions like that of Roman Storm. Can anonymity coexist with regulatory demands? It’s a tightrope walk, much like balancing on a wire between innovation and oversight.
In terms of brand alignment, WLFI’s approach contrasts sharply with platforms that emphasize transparency from the outset. Projects that build investor confidence through clear policies often fare better, avoiding the “mafia” accusations Skvorc leveled. Evidence from successful launches, like those with audited smart contracts, shows retention rates up to 30% higher, per Deloitte’s blockchain reports.
FAQ
What should I do if my crypto tokens are frozen by a project?
If your tokens are frozen, first review the project’s terms and contact their support team with evidence of your transactions. Document everything and consider consulting a blockchain legal expert, as resolutions often depend on the platform’s policies and your wallet’s history.
Is WLFI connected to Donald Trump, and how does that affect investors?
Yes, WLFI has ties to Donald Trump through his family, which some see as adding legitimacy but others view as complicating recourse due to political influence. Investors should research independently and treat it like any high-risk crypto venture.
How can I avoid high-risk flags on my crypto wallet?
To minimize risks, avoid mixers like Tornado Cash and sanctioned entities. Use reputable wallets, monitor onchain activity via tools like Etherscan, and opt for exchanges with strong compliance that manually verify issues rather than relying solely on automation.
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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
Source: Original Post Link

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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
Source: Original Post Link