World Liberty Financial
Donald Trump promoted World Liberty Financial and has been appointed as the DeFi project's chief advocate. WLFI Twitter

KEY POINTS

  • WLFI warned X users not to engage with the compromised account
  • Witkoff later said his account was compromised but has since been retrieved
  • Prominent internet personality Taylor Caniff said he lost $3,600 due to the breach
  • Another user claims to have lost 458 $SOL worth some $90,000 on current prices

The X account of Zach Witkoff, one of the co-founders of World Liberty Financial (WLFI), was compromised Tuesday night and used by exploiters to promote a fake memecoin based on U.S. President Donald Trump's son, Barron.

The Trump family, specifically the president's three sons, are deeply involved in the WLFI DeFi protocol project, and the president himself promoted the project during his campaign.

WLFI Warns Users Not to Engage

Multiple reports emerged Wednesday night on social media, revealing that Witkoff's account had been used to promote a fake BARRON token.

As per social media reports, Witkoff's account was used to post about a meme coin based on Barron and the president himself would soon endorse the said crypto coin.

WLFI soon caught wind of the reports and released a statement. It confirmed that Witkoff's account was compromised and warned users not to engage with any posts. The DeFi project also said the team was working to resolve the issue.

About an hour after WLFI's statement on the matter, Witkoff's account was retrieved. "Account was hacked thanks to the @X and James Musk for hopping on this quickly. You guys are the best!" Witkoff wrote.

He also thanked his "friends" at crypto platform MoonPay, including MoonPay President of Enterprise Keith Grossman.

Crypto Holders Report Thousands in Losses

Some crypto users have since claimed they lost money on the fake Barron token, including former prominent Vine creator Taylor Caniff, who said he lost $3,600 in the meme coin.

One user called out Witkoff for not apologizing "to all the people (myself included) who lost a ton of money due to your negligence."

Another user demanded a refund, saying he lost 458 Solana (SOL) on the token, which is approximately $90,000 based on current prices.

One user said he lost 30 SOL (approximately $5,900), while another user expressed frustration over X not giving a response to other users who get their accounts flagged or suspended "for no reason."

The exact amount lost to the exploit of Witkoff's account is unclear at this time, and the losses claimed by some users have yet to be verified.

Exploit Comes at Crucial Time for WLFI

The hack of Witkoff's X account came at a critical period for WLFI as the cryptocurrency community observes how its new initiative, Macro Strategy, will affect the crypto market.

The DeFi project announced its strategic crypto token reserve Tuesday, which it said will "bolster" growth around Bitcoin, Ethereum, and other major crypto assets.

Blockchain analytics firm Arkham Intelligence has identified a wallet belonging to the Trump family's crypto project. The wallet holds various altcoins and memecoins, but has yet to purchase BTC.

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