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{"actor":"system:backfill","investigation_id":"eba70190-87a9-40a2-8470-19f326dfcd49","kind":"publish","page_slug":"dolomite","published_at":"2026-05-28T05:24:16.966Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Dolomite","sections":[{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://dolomite.io/","type":"other","url":""},{"credibility":3,"name":"https://docs.dolomite.io/","type":"other","url":""},{"credibility":3,"name":"https://coinmarketcap.com/currencies/dolomite/","type":"other","url":""},{"credibility":3,"name":"https://www.theblock.co/post/314203/dolomite-co-founder-corey-caplan-takes-advisor-role-at-trump-backed-world-liberty-financial","type":"other","url":""},{"credibility":3,"name":"https://chainwire.org/2025/04/24/dolomite-to-launch-tge-with-dolo-token/","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://cointelegraph.com/news/old-dolomite-exchange-contract-suffers-1-8-million-loss-from-approval-exploit","type":"other","url":""},{"credibility":3,"name":"https://www.web3isgoinggreat.com/single/dolomite-exchange-hack","type":"other","url":""},{"credibility":3,"name":"https://revoke.cash/exploits/dolomite","type":"other","url":""},{"credibility":3,"name":"https://cryptobriefing.com/dolomite-security-exploit-theft/","type":"other","url":""},{"credibility":3,"name":"https://www.halborn.com/blog/post/month-in-review-top-defi-hacks-of-march-2024","type":"other","url":""},{"credibility":3,"name":"https://cryptodaily.co.uk/2024/03/dolomite-exchange-breach-hacker-pilfers-18m-in-usdc","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.coindesk.com/markets/2026/04/09/trump-s-world-liberty-financial-borrows-usd75-million-against-its-own-token-trapping-depositors-on-dolomite","type":"other","url":""},{"credibility":3,"name":"https://www.coindesk.com/markets/2026/04/10/trump-backed-wlfi-token-drops-12-to-record-lows-after-team-defends-multi-million-lending-position","type":"other","url":""},{"credibility":3,"name":"https://www.coindesk.com/markets/2026/04/13/wlfi-mints-usd25-million-in-fresh-usd1-and-burns-usd3-million-days-after-repayment-claim","type":"other","url":""},{"credibility":3,"name":"https://fortune.com/2026/04/10/trump-world-liberty-financial-crypto-tokens-insider-loans/","type":"other","url":""},{"credibility":3,"name":"https://www.banking.senate.gov/newsroom/minority/ahead-of-crypto-markup-warren-presses-sec-to-investigate-trump-family-crypto-firm-for-potentially-misleading-investors","type":"other","url":""},{"credibility":3,"name":"https://www.cryptotimes.io/2026/05/15/senator-warren-urges-sec-to-probe-trump-backed-world-liberty-financial/","type":"other","url":""},{"credibility":3,"name":"https://financefeeds.com/wlfi-leverage-position-pushes-dolomite-protocol-to-liquidity-limit/","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://forum.arbitrum.foundation/t/tremendous-violation-of-stip-rules-by-dolomite-and-umami/19739","type":"other","url":""},{"credibility":3,"name":"https://forum.arbitrum.foundation/t/dolomite-final-stip-round-1/16818","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.pcrisk.com/removal-guides/33668-dolomite-dolo-allocation-checker-scam","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://docs.dolomite.io/audits-and-security","type":"other","url":""},{"credibility":3,"name":"https://www.coingecko.com/en/coins/dolomite","type":"other","url":""},{"credibility":3,"name":"https://coinmarketcap.com/currencies/dolomite/","type":"other","url":""}]}],"sources_used":[],"summary":"Dolomite is a decentralized money market and trading protocol originally launched on Ethereum in 2019 and migrated to Arbitrum in 2022. The protocol suffered a $1.8 million exploit in March 2024 due to a reentrancy vulnerability in a legacy 2019 Ethereum contract. The platform drew significant controversy in 2026 when Trump-affiliated World Liberty Financial (WLFI) used 5 billion WLFI tokens as collateral to borrow $75 million on Dolomite — a platform co-founded by WLFI's own chief technology officer — driving USD1 pool utilization to 93% and trapping ordinary depositors.","timeline":[{"date":"2019-01-01","event":"Dolomite originally launched on Ethereum mainnet as a decentralized exchange; vulnerable legacy contract deployed.","source":""},{"date":"2022-10-01","event":"Dolomite migrated to Arbitrum One, phasing out Ethereum version while legacy contracts remained active on-chain.","source":""},{"date":"2023-11-01","event":"Arbitrum community filed complaint alleging Dolomite violated STIP program rules via oARB mechanism; resolved after multisig intervention and mechanism modification.","source":""},{"date":"2024-03-20","event":"Dolomite's deprecated 2019 Ethereum contract exploited for approximately $1.8 million in USDC via reentrancy bypass through TradeManager contract; stolen funds moved through Tornado Cash.","source":""},{"date":"2025-01-06","event":"Snapshot taken for DOLO token airdrop eligibility.","source":""},{"date":"2025-08-31","event":"DOLO token reached all-time high of $0.3671.","source":""},{"date":"2025-09-01","event":"Dolomite co-founder Corey Caplan announced as adviser and CTO to World Liberty Financial (WLFI).","source":""},{"date":"2026-01-01","event":"World Liberty Financial launched its DeFi lending market built on Dolomite infrastructure, boosting DOLO price temporarily.","source":""},{"date":"2026-04-09","event":"CoinDesk reported WLFI deposited 5 billion WLFI tokens on Dolomite to borrow $75 million in stablecoins, driving USD1 pool utilization to 93% and trapping depositors.","source":""},{"date":"2026-04-10","event":"WLFI token dropped 12% to record lows; WLFI team publicly defended the position and dismissed liquidation concerns as 'FUD'.","source":""},{"date":"2026-04-13","event":"WLFI minted $25 million in fresh USD1 stablecoin amid ongoing Dolomite borrowing controversy.","source":""},{"date":"2026-05-14","event":"Senator Elizabeth Warren formally urged SEC Chairman Paul Atkins to investigate whether WLFI misled investors in connection with Dolomite borrowing arrangement.","source":""}]},"v":1}