WLFI Drama Heats Up #CryptoTownHall

Key Takeaways

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  WLFI investor tokens remain 80 percent locked while insiders exit

  “World Liberty Financial was launched to accredited investors, actually. It was done, quote, unquote, the right way, for those who don't remember it. And, effectively, the Trumps and the Witkoff's and everybody were on the website. And, well, now 80% of investor tokens are still locked up, and there hasn't been a vote on how those come out.”

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  Dolomite pools face 93 percent utilization from WLFI extraction

  “World Liberty Financial has moved a ton of tokens over to DoloMyte... and they've basically used all of the World WLFI, World Liberty Financial Token, which they created themselves and have deposited it there at a extremely basically draining the liquidity pools entirely to point of 93%, utilization and have extracted a 150, depending on how you look, million in stablecoins, and nobody knows if those will get paid back. What does that mean? Means anyone else who has money there can't get it out.”

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  WLFI founders have track records in drop-shipping and grifting

  “I had a little bit of a look into the founders behind it, Zach Folkman and Chase Hero... you can go and find Zach Folkman's Facebook page, which is public, and post back in 2019 where he's literally shilling, drop shipping. Like, these guys used to sell Chinese hair extensions via Amazon and, AliPay, Alibaba drop shipping. And then they were doing master classes in LA on how to do this, and and the the track record is sketchy at best. These boys have got a bit of a history of, I mean, frankly, grifting.”

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  WLFI is a code fork of the failed Dough Finance

  “I believe the whole sort of the product behind it is actually a fork of one of their original... Dough finance. So back in... it was itself a scam, right? TVL dropped down to a couple of grand. Some investor tried to sue them. And then I think it was, like, six weeks later, they actually announced World Liberty Finance. Same code, new name with Trump behind it, which, you know, it just I mean, the signals that it sends.”

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  Project attempted predatory token swaps for liquid treasury assets

  “I was getting approached by representatives from WF saying, can you put us in touch? Because we wanna do a token swap. The whole idea being you give us $10,000,000 of your token. We'll give you $10,000,000 of WF and do a swap less a fee, like a broker fee, 20% of whatever it was. That's what they were essentially doing. It was taking their totally worthless shit coin and swapping it for stuff that had actual liquidity, real followers, potentially, you know, real utility, and real value.”

Episode Description

In this episode of Crypto Town Hall, Scott and guests dive deep into the ongoing World Liberty Financial drama. What started as a Trump-backed DeFi project promising to help the "debanked" has turned into a major controversy, with massive token locking, high utilization on Dolomite lending pools, and over $150M reportedly extracted in stablecoins while investors remain locked out. The conversation explores the project's questionable origins, governance issues, and the broader implications for crypto's reputation and upcoming legislation like the CLARITY Act. Learn more about your ad choices. Visit megaphone.fm/adchoices