World Liberty Financial (WLFI) minted 25 million USD1 tokens and simultaneously burned 3 million, generating a net increase of $22 million in the circulation of its stablecoin. The operation was funded through official custodian BitGo and executed days after the company announced the repayment of $25 million on a debt position of approximately $75 million on Dolomite, a DeFi lending platform whose co-founder serves as an advisor to World Liberty.
The coincidence in amounts raised doubts about whether the project used pre-existing funds for the repayment and then minted new tokens to replenish its treasury, or whether it created the tokens directly to settle the debt. WLFI did not respond to inquiries on the matter.
On April 9, CoinDesk revealed that WLFI had deposited billions of its own governance tokens as collateral on Dolomite to borrow stablecoins. The strategy drove the utilization of the USD1 pool to 100%, leaving other users unable to withdraw their funds. Justin Sun, one of the project’s main investors linked to the family of President Donald Trump, publicly criticized the platform for treating its users like a “personal ATM.” World Liberty responded by labeling the criticism “FUD” and threatened legal action against Sun.
Source: https://intel.arkm.com/explorer/entity/worldlibertyfi
Disclaimer: Crypto Economy Flash News are based on verified public and official sources. Their purpose is to provide fast, factual updates about relevant events in the crypto and blockchain ecosystem.
This information does not constitute financial advice or investment recommendation. Readers are encouraged to verify all details through official project channels before making any related decisions
