A Croatian developer with deep roots in the Ethereum ecosystem says the platform refused to release his tokens, citing compliance red flags.
The dispute surfaced when Bruno Skvorc, founder of the NFT infrastructure startup RMRK and an early contributor to Ethereum 2.0, revealed that his wallet had been blocked from withdrawals. According to him, the project’s compliance department branded his address as too risky to receive tokens, even though the same address was accepted when funds were originally deposited.
Skvorc shared screenshots showing WLFI’s compliance team denying his request for tokens. He described the situation as one where investors are powerless against an organization backed by political influence, calling it “a mafia-style model” where complaints go nowhere. He also claimed at least five other investors were facing identical restrictions.
Onchain researchers quickly weighed in, pointing to flaws in the automated screening systems used by many crypto projects. Blockchain analyst ZachXBT noted that these tools often assign a “high risk” label to wallets for tenuous reasons, such as interacting with DeFi apps or passing funds through exchanges later targeted by regulators.
In Skvorc’s case, the system flagged activity linked to Tornado Cash, indirect ties to Russian-sanctioned platforms like Garantex and Netex24, and use of a service dashboard that has since been blacklisted. While none of these were direct violations, they were enough for WLFI to freeze his allocation indefinitely.
This is not the first time WLFI has drawn attention. The token recently made headlines for extreme price volatility, with large holders losing millions during a 40% drop despite the project burning 47 million tokens to shore up value. The latest dispute adds to questions over how the project manages investor relations and whether political ties are shielding it from accountability.
For Skvorc, the message is clear: without proper oversight, developers and investors alike may find themselves cut off from their funds with little chance of recovery.
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