Fall of Price: Within 24 hours, the WLFI token experienced a significant fall of over 13% to hit a new low of around $0.078, representing a 75% reduction from its all-time high price attained in September 2025.
Insider Loan Scandal: Reports indicate the World Liberty treasury used 3 billion to 5 billion WLFI tokens as collateral on the Dolomite protocol to borrow $75 million in stablecoins, a move critics label as “circular self-dealing.”
Liquidity Trap: The huge borrowing has effectively exhausted the USD1 liquidity pool of the Dolomite stablecoin, so that other lenders cannot withdraw their funds.
Roadmap to Revival: The project will shift to tokenized real estate and a national banking charter to rebuild institutional trust, despite the carnage.
Team Rebuttal: The World Liberty team has rejected the liquidation concerns as FUD, stating that they have plenty of other collateral to protect their positions.
Source: https://bfmtimes.com/world-liberty-wlfi-crash-insider-loan-crisis/
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