World Liberty Financial (WLFI), a cryptocurrency backed by the Trump family that just launched, is already being targeted in multiple cyberattacks against token holders.
Security experts say hackers are taking advantage of a vulnerability in Ethereum’s EIP-7702, which was adopted earlier this year in the Pectra upgrade.
The Pectra upgrade allowed external accounts to act like smart contracts, providing a better user experience through batch transactions and delegation rights.
Malicious actors have abused this ability by putting hacker-controlled addresses in victims’ wallets, and as quickly as the victims’ WLFI tokens are deposited, they are drained away.
How the Exploit Works?
Yu Xian, founder of SlowMist, explained the process in a post on X, stating that “the exploit comes from private key leakage, usually from phishing.”
When a private key is leaked or compromised, the hacker will create a delegate contract linked to the compromised wallet address.
Any following transactions the victim does like sending ETH as gas (or receiving WLFI tokens), will trigger the attacker’s code, and the hacker will instantaneously withdraw the funds from the delegate contract.
Xian also described an example where various WLFI addresses were drained via the delegate address process.
Xian had recommended that sometimes victims may be able to “cancel or replace the compromised EIP-7702 contract” as a way to regain control, but the chances are limited.
Growing Concerns Among WLFI Holders
The exploit has created panic across WLFI community channels, and users are sharing their experiences regarding hack attempts.
A registered user under the name hakanemiratlas stated that he was only able to get 20% of his WLFI tokens, as automated bots took the rest.
Another individual, Anton, commented that because of WLFI’s presale layout, he is in the same wallet that he used to join the whitelist, and he has WLFI tokens in that wallet, so he was subject to sweeper bot attacks.
He advised the WLFI development team to implement a secure direct transfer system to protect investors’ assets.
Also Read: ALT5 SIGMA Announces Major $1.5B Private Placement To Purchase Trump-Backed WLFI Tokens
WLFI’s Price Stumbles Amid Security Chaos
The token’s precarious launch has been mirrored in its performance on the markets. WLFI began trading on September 1, 2025, at just south of $0.30. The token quickly slid to $0.24. It has also fallen further to $0.2353.
In the last 24 hours, WLFI has lost a further 16.26%, but compared with its earlier valuation of the week before its launch, the token is still trading higher.
With a circulating supply of 27 billion tokens, WLFI has a market capitalization of $6.39 billion, making it the 31st largest cryptocurrency measured by market cap.
Despite all of the security concerns, the token has been able to generate a tremendous amount of trading activity, with over $2.7 billion in daily volume.
Also Read: World Liberty Joins Digital-Asset Treasury Boom With Plan For $1.5B WLFI Holding Company
Exchanges and Investors Weigh the Fallout
The WLFI token, backed by President Trump, launched on major exchanges immediately on Binance, OKX, and Bybit, and reached instant exposure and acceptability.
Unfortunately, a persistent exploit of the security vulnerability has diminished excitement and early enthusiasm surrounding readability on the blockchain.
The plan was to build up a flagship crypto product branding on the Trump family name, but every investor is now left wondering about the viability of the currency and what new measures the WLFI team plans on implementing to secure the token from future vulnerabilities.
Overall, the unrelenting threat of people exploiting the EIP-7702 loophole has put the WLFI team in a pressured position to work as much as they can to address concerns of the community and safeguard wallets before anyone loses any more confidence in WLFI tokens.
Also Read: Trump’s Family Backed WLFI Invests $10 Million In Falcon Finance