Skvorc explained that he and five fellow investors experienced token lock‑ups from day one, with none of the promised 20% unlocks ever materializing. He condemned WLFI’s decision to block his wallet under the “high risk” designation after initially accepting his investment.

The “high risk” flags were identified from three distinct sources:

• 40 ETH moved through the crypto mixer Tornado Cash
• Indirect exposure to sanctioned platforms such as Garantex and Netex24
• An interaction with a dashboard that was later exposed as a scam

ZachXBT Criticizes Faulty Compliance Mechanisms

On‑chain researcher ZachXBT pointed out that many “high risk” alerts are incorrect. He noted an example involving a presale team that relied on these tools, which flagged several addresses as risky. After a manual review, Zach discovered that certain exchanges or smart contracts were mislabelled, and some addresses had been flagged simply because they were “8 hops away” from a risky point.

While Zach praised WLFI’s commitment to compliance, he warned that overreliance on flawed tools could damage the project’s credibility. He suggested that Skvorc’s tokens might be reclaimed if his wallet was flagged erroneously.

WLFI Justifies the Blacklisting Action

World Liberty Financial (WLFI) announced that its wallet blacklisting was intended to protect users, not suppress legitimate trading. The company stated that of the 272 wallets blacklisted, roughly 215 were identified as phishing accounts and 50 had been compromised via support channels.

Justin Sun, the cryptocurrency icon, clarified that his wallet activity consisted of only small test deposits and internal transfers, with no market impact. He also highlighted that his tokens were frozen despite him being an early backer of WLFI.

Sun decried the lack of equal treatment for all investors, describing the tokens as “sacred and inviolable,” and urged WLFI to release his holdings.