Justin Sun Calls Out Trump-Linked WLFI Over Hidden Wallet That Can Freeze Funds

Tron founder Justin Sun, who additionally occurs to be the only largest investor within the Trump family-linked World Liberty Financial (WLFI), has publicly demanded that the DeFi undertaking disclose the identities behind a single nameless pockets and a five-member group that he claims can freeze consumer funds.

The confrontation is centered on the management of World Liberty’s native WLFI tokens, with Sun arguing that the platform’s governance construction leaves buyers uncovered to unilateral choices.

The On-Chain Evidence Sun Is Pointing To

Sun based mostly his demand on an evaluation of WLFI’s good contract construction, which was corroborated by blockchain researcher banteg, whose publish on X on April 12 laid out the on-chain timelines intimately. The analyst says that the primary WLFI token that was launched in September 2024 didn’t have a blacklist mechanism, regardless that it may very well be upgraded.

They additionally say {that a} blacklist characteristic was added to the second model on August 24, 2025, 11 months after Sun put cash into the undertaking and only a week earlier than the tokens went on sale.

There was one other improve in November 2025, which added what banteg referred to as “batch reallocation,” which they stated was, in essence, a seizure mechanism that World Liberty apparently justified on the time as a software to get better funds for holders that fell sufferer to phishing scams.

Banteg additionally took a take a look at the vesting construction that had been particularly utilized to Sun, the place WLFI solely created a separate token class for the Tron founder, referred to as class 3. Per their publish, the opposite 519 World Liberty buyers all sit in class 1.

The analyst added that minutes after Sun activated his pockets, WLFI’s 3-of-5 multisig set his class 3 to permit 20% of his 3 billion tokens to be freely transferred, with the crypto entrepreneur shifting 55 million WLFI, solely to have his pockets frozen by an out of doors deal with performing as each a guardian and a signer on the 3-of-5 multisig.

The billionaire businessman is now demanding to know who’s behind that deal with.

“I’m calling on World Liberty Financial @worldlibertyfi to publicly disclose who controls the only guardian EOA and the three/5 multisig that govern the WLFI good contract,” he wrote in his publish on X.

Legal Standoff Looms

According to Sun, whose involvement with WLFI began even earlier than the undertaking’s public launch after he bought $75 million in WLFI tokens to develop into the undertaking’s largest backer, one particular person has the unilateral energy to freeze the belongings of any token holder.

This will not be what he envisioned when he put his cash within the undertaking, having stated on the time that his assist was rooted in WLFI’s acknowledged mission of bringing decentralized finance to mainstream Americans. However, what he now says was by no means disclosed to him, or to another investor, was the existence of a blacklisting operate embedded within the good contract, managed by one individual.

“Community governance and voting are meaningless,” he argued. “Every proposal, each vote, each declare of decentralized decision-making is theater.”

In his opinion, the actual energy sits with the unknown exterior deal with and the 3-of-5 multisig group, who will not be answerable to anybody. But World Liberty has dismissed the accusations, writing on X:

“Justin’s favourite transfer is enjoying the sufferer whereas making baseless allegations to cowl up his personal misconduct. We have the contracts. We have the proof. We have the reality. See you in courtroom pal.”

The publish Justin Sun Calls Out Trump-Linked WLFI Over Hidden Wallet That Can Freeze Funds appeared first on CryptoPotato.