Justin Sun Accuses Trump’s World Liberty Financial of Hiding Wallet Freeze Function
Tron founder Justin Sun has criticized World Liberty Financial. He accused the Trump-linked crypto enterprise of hiding a blacklist operate that allowed it to freeze investor wallets.
In an April 12 publish on X, Sun stated he invested in World Liberty as a result of he believed the platform’s public pitch round decentralized finance and broader retail entry.
Justin Sun Slams World Liberty Financial’s ‘Trap Door’
He stated the corporate undermined that perception by hiding a contract characteristic that permit it freeze or limit token holders with out discover or recourse. Sun stated the team blacklisted his WLFI wallet in 2025 and urged it to unlock the tokens.
Sun isn’t a marginal WLFI holder. The Tron founder had spent at least $75 million on WLFI tokens, making him one of the undertaking’s greatest identified backers.
However, World Liberty blacklisted Sun’s pockets when the project launched last year. At the time, the corporate stated it flagged the Sun-linked tackle as a result of it suspected the pockets had misappropriated different holders’ funds.
Sun disputed that characterization and has now recast the episode as proof that the undertaking retained centralized management inconsistent with its DeFi branding.
“Every motion taken by the WLFI crew to extract charges from customers, to secretly implant backdoor controls over person belongings, to freeze investor funds with out disclosure or due course of, and to deal with the crypto group as a private ATM — all of these actions are illegitimate and have been by no means approved by any honest, clear, or good-faith group governance course of,” he stated on X.
The continued blacklisting of Sun’s pockets has already resulted in losses of greater than $80 million, in response to blockchain agency Bubblemaps.
WLFI Faces Increased Scrutiny
Meanwhile, Sun’s criticism represents a contemporary blow for a undertaking already beneath strain after a pointy decline in its token worth and criticism of its borrowing practices.
The undertaking was already going through market scrutiny over its use of WLFI as collateral on Dolomite, a decentralized lending protocol. Notably, the protocol can be tied to at least one of the enterprise’s advisers.
On-chain exercise confirmed that WLFI’s crew posted roughly $400 million of WLFI and borrowed $150 million in stablecoins. The exercise raised issues about liquidity, related-party conflicts, and the danger {that a} deeper drop in WLFI might intensify stress on the place
Those issues have already proven up out there. WLFI fell to an all-time low near $0.08 after buyers digested stories in regards to the Dolomite loans.
World Liberty has tried to calm investors somewhat than retreat from the technique. The firm stated on social media that its mortgage positions have been “nowhere close to liquidation” and described itself because the “anchor borrower” in WLFI markets.
On April 11, the agency stated it had repaid $25 million of the loan. It added that it might publish a governance proposal for a phased unlock for early retail purchasers after group dialogue.
The publish Justin Sun Accuses Trump’s World Liberty Financial of Hiding Wallet Freeze Function appeared first on BeInCrypto.
