🕵️ The fraud of Matt Hardy and the “WLFI token”
On October 1, 2025, the verified Instagram account of wrestler Matt Hardy was hacked to promote a fake token called WLFI, with promises of “free tokens,” “exclusive NFTs,” and political ties (Donald Trump) to lend credibility. (The Times of India)
Hackers exploited the trust generated by a verified account and the massive presence of followers to spread misleading links, seeking to get people to click, share sensitive data, or invest in a project that does not exist. (The Times of India)
🏛️ Structural risks: technical exploits, regulatory compliance, and custody
In the actual WLFI (World Liberty Financial) project, attempts to hack have been blocked through the 'blacklisting' of compromised wallets. (Cointelegraph)
A technical exploit has also been identified via the Ethereum improvement called EIP-7702, which allows external accounts to delegate execution rights, which some attackers have exploited to place malicious contracts ('pre-planted') that drain tokens as soon as they receive deposits or interact with certain contracts. (coinglass)
Given this scenario, regulation is under pressure: in the U.S., regulatory bodies are increasing oversight on the classification of crypto assets (regulated asset? security?), custody requirements, investor protection, and compliance (KYC, AML, etc.). Although not all details are firm, it is clear that tolerance for irregularities is decreasing. (Reuters)
🔍 Implications for investors and the ecosystem
Area
What to watch / recommendation
Identity and verification
Do not blindly trust verified social media accounts: always confirm crypto projects or offers through official channels.
Contract review
Check smart contract addresses (etherscan or other tools), avoid contracts that look similar but are clones; pay attention to delegated permissions or 'delegate' functions.
Secure custody
Use secure wallets, possibly with a hardware wallet, avoid accumulating tokens in wallets with potentially vulnerable keys.
Regulation and compliance
Stay informed about local regulation: if a token is considered a security, stricter regulations may apply; regulated products offer greater security backing for institutional investors.
Platform responsibility
Growing expectation that social networks, exchanges, and other participants establish clear security policies, rapid response to hacks, and mechanisms to mitigate fraud.
🔮 What to expect to happen
Greater transparency rules for crypto projects: audits, verifiable white papers, identified teams, robust security protocols.
Clearer legislation defining when a token is a 'security' or not, which requires compliance with requirements such as registration, disclosure, and regulatory oversight.
Regulators demanding greater legal responsibility for platforms that allow the promotion of fraudulent tokens (influencers, social networks, advertising).
Increased institutional interest in regulated and secure products, which could shift some capital from less reliable projects to alternatives with greater guarantees.
🏁 Conclusion
The case of the hack of Matt Hardy's account to promote a fake WLFI reflects how crypto fraud is exploiting the unity of public trust, social networks, and effective narrative. Media exposure highlights real risks — both technical and regulatory — that not only affect retail investors but also pressure the ecosystem to evolve in security and compliance standards.
#CriptoSeguridad
#FraudeCrypto
#RegulacionCrypto
#WLFI
#BinanceSquare
