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Is World Liberty Financial (WLFI) halal?

Questionable

No condition fails, but 2 points remain to be verified or fall under a tolerated case.

Verdict calculated by Halal Bourse's published rules from an investigation of primary sources (project documentation, registers, decisions), conducted on 10/07/2026 and not reviewed by a human.

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The asset

ERC-20 governance token of the World Liberty Financial protocol (USD1 stablecoin, WLFI Markets lending interface), contract upgraded behind a proxy (version V4); versions exist on BNB Smart Chain and Solana Issuer: World Liberty Financial LLC (Florida), which owns, develops and operates the protocol and its intellectual property; World Liberty Financial, Inc. (Delaware non-stock corporation, issuer named by the MiCA white paper) and WLF Holdco LLC (Delaware). Officers named (Blockworks filing of August 18, 2026): Zachary Witkoff (chief executive officer), Zachary Folkman (chief operating officer), Chase Herro, Corey Caplan (chief technology officer); co-founders Donald Trump Jr., Eric Trump, Barron Trump and Alex Witkoff; Donald J. Trump and Steven Witkoff are listed as emeritus co-founders. No foundation, no DAO..

Initial supply set at 100 billion WLFI. The official documentation gives a current total supply of about 96.74 billion, the Blockworks filing 99.95 billion as of August 18, 2026 (gap unexplained, burns taking place). CoinMarketCap data of October 7, 2026: rank 50, price of $0.0544, 31.78 billion WLFI in circulation (circulating market capitalization of about $1.7 billion). Most of the supply remains locked (see autres_constats).

Why this verdict

  1. Permissible purpose : to be verified or tolerated case. WLFI's only stated utility is protocol governance: proposing and voting on Snapshot. This governance has had effects: the July 2025 vote made part of the tokens tradable, the March 2026 vote introduced staking and the vote of late April to early May 2026 set the unlock schedule, the September 2025 vote decided the buyback and burn of liquidity fees; 8 proposals and 59,829 votes in total on Snapshot. But the company screens all proposals before the vote, a company multisig manually executes the upgrades, adoption does not oblige execution, and the token gives no ownership, management or revenue right. The governed protocol's products are the USD1 stablecoin (reserves, see USD1 profile) and a collateralized lending market interface, WLFI Markets, provided by the Dolomite protocol (interest-bearing lending); the share of the company's revenue drawn from these products is not published. To be decided: effective governance within the meaning of rule A.8, and the token's purpose, which represents the governance of a protocol that includes interest-bearing lending.
  2. No riba : met. Holding WLFI pays nothing: the token carries no right to any dividend, reward or distribution. The buyback and burn funded by the protocol's liquidity fees reduces supply without distributing anything to holders. The staking program, which pays rewards in USD1, is a product built on the token (autres_constats).
  3. No gambling : met. A spot purchase on the market is of a transferable ERC-20 token (most of the tokens from the public sale, the founders and the team remain locked, autres_constats); it is not a contract on a price difference. The token has a governance function (c1); the gain comes only from resale, since no revenue is attached.
  4. No excessive gharar : met. The issuer and the officers are identified; the supply, the allocation (token sale 33.893%, community growth 32.6%, co-founders 30%, team and advisors 3.507%), the unlock schedules and the sharing of net revenue (75% to DT Marks DEFI LLC, a company linked to Donald J. Trump, under a services contract) are published. Limits: the contract is upgraded behind a proxy by a 3-of-5 multisig whose five signers are not named (reading of the chain), the company keeps discretion over the timing of unlocks and the use of 32.6% of the supply with no public schedule, and the current contract gives the owner the power to reassign balances (c5, scan_securite). No anonymous party was found, but the multisig signers are not public: gap.
  5. Real ownership : to be verified or tolerated case. WLFI is held in a personal wallet, but holding depends on the issuer: the current contract (V4) reserves to the owner (the company's multisig) and to “guardians” the blacklisting of addresses, and to the owner the pausing of transfers and the reassignment of balances from one address to another (burn at one, mint at the other), and the terms of use subject holding to an eligibility check. These powers have been used: 272 addresses blacklisted in September 2025 (215 of them linked to phishing, according to the issuer) and the freezing of investor Justin Sun's wallet, contested in court (autres_constats). Holding dependent on an intermediary.
  6. No fraud or manipulation : met. No sanction, fine or court decision against the issuer or the token was found; the AMF blacklist returns nothing; the team is identified; top ten wallets excluding platforms and contracts: 27.5% (GoPlus scan), under 50%. The powers to freeze, pause, reassign and upgrade the contract are those of an identified issuer, not rug pull signals (A.8). Proceedings under way, with no decision: Justin Sun is suing the issuer in a federal court in California (April 21, 2026) for fraud and unlawful freezing of his tokens; the issuer is suing him for defamation in a Florida court (May 4, 2026); a member of the U.S. House of Representatives opened an inquiry (February 5, 2026) into the purchase of 49% of the company by a firm linked to a United Arab Emirates executive. These are accusations and private or parliamentary complaints, with no established sanction or deception: information. To be decided whether these proceedings should weigh (a_verifier).

Contract security scan

GoPlus security scan of the WLFI contract on Ethereum: 85,116 holders; top ten wallets excluding platforms and contracts: 27.5%; code published; no honeypot, external minting or tax found. Signal found: upgradeable proxy contract (is_proxy). Reading under A.8: the issuer is identified, so this power is not a rug pull signal. Reading of the code and the chain on October 7, 2026: the token sits behind a transparent proxy (EIP-1967 standard) whose implementation is “WorldLibertyFinancialV4”; the owner of the token and of the proxy's admin contract is the same multisig wallet (Safe) with a 3-of-5 threshold, signers not named. The code gives the owner: pausing of transfers, blacklisting, reassignment of balances between addresses (burn, then mint of tokens at the recipient) and recovery of tokens stuck in the contract; to “guardians” designated by the owner: pause and blacklist. These powers are documented as activation and blacklist functions administered by the company. An audit of the sale contract was carried out before launch by four firms (Blocksec, Zokyo, Fuzzland, Peckshield); the audit of version V4 was not found.

Opinions found during the research

Opinions reported as read, named for what they are; they do not enter into the calculation of the verdict.

What could not be verified

Sources read

Other cryptos analyzed

General information: neither investment advice nor a fatwa. Verdict calculated by published rules, from financial statements read automatically and not reviewed by a human. Read the methodology