While Trump family makes billions in crypto, WLFI users get drained

Criminals have seemingly found a loophole in the latest ethereum (ETH) upgrade and are using it to drain the wallets connected to the Trump family's crypto projects.

While the extent of the losses is unknown, Yu Xian, founder of crypto security specialist SlowMist, said that reports about people losing WLFI tokens of the Trump family–backed World Liberty Financial (WLF) project are related to phishing attempts.

又遇到一位玩家多个地址的 $WLFI 都被盗事件，看了下盗窃手法，又是 7702 delegate 恶意合约利用，前提也是私钥泄露，黑客在目标钱包地址上提前埋伏好恶意的 7702 delegate 地址，之后将目标地址所有 ETH 及价值 token（比如这里是 $WLFI）转走，一点渣渣都不剩，如果用户转入 ETH 当… https://t.co/YyVvMPwaGM

undefined Cos(余弦)😶‍🌫️ (@evilcos) September 1, 2025

"Classic EIP-7702 phishing exploit," Xian said, referring to a feature introduced with ethereum's Pectra upgrade in May that enabled new ways to make batch transactions.

According to the founder, who said he was helping some people with the missing WLFI issues, the loophole allows attackers to redirect funds sent by a victim to their own address.

GoPlus Security, another crypto security firm, explained that the attack has three steps: criminals obtain a victim's private keys, then launch a malicious EIP-7702 authorization transaction, delegating the account to a malicious contract. Finally, when the victim transfers funds to that account, tokens are automatically redirected to hacker addresses.

🚨 EIP-7702 Phishing Attacks Strike Again! Multiple Users Suffer Losses

More users have fallen victim to EIP-7702-related phishing scams. This attack demonstrates new levels of danger: hackers not only steal private keys but leverage EIP-7702 to enhance attack persistence and…

undefined GoPlus Security 🚦 (@GoPlusSecurity) September 2, 2025

The firm stressed that "this attack demonstrates new levels of danger: hackers not only steal private keys but leverage EIP-7702 to enhance attack persistence and automation," adding that the incident "affects numerous users."

WLF hasn’t addressed this issue in public, only posting about the launch of public trading of the WLFI token and new governance proposals. The token debuted on crypto exchanges on September 1st and is currently down 25%.

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According to calculations by the Wall Street Journal, the Trump family, on paper, has earned as much as $5 billion after WLFI became available for trading in public. As reported, Donald Trump has also made a fortune from his memecoin, TRUMP, while his wife, Melania, also has her own memecoin. TRUMP is down 89% from its all-time highs, reached in January 2025, while MELANIA crashed 99% in the same period.