|

Trump’s Crypto Venture Secretly Built A Way To Freeze Your Funds, Investor Claims

👨‍🚀

A pool with 93% utilization and shrinking exit choices is without doubt one of the extra uncomfortable particulars buried within the rising controversy round World Liberty Financial — the crypto undertaking related to US President Donald Trump that’s now preventing accusations of deception from one in all its personal greatest backers.

Sun Claims His Wallet Was Frozen First

Tron founder Justin Sun, who poured greater than $100 million into the undertaking throughout two separate investments, went public on X with a pointed accusation: that WLFI quietly constructed a backdoor into its good contract infrastructure — one which lets the staff freeze, prohibit, or block entry to consumer funds with out warning.

Sun mentioned he was not only a critic watching from the skin. His personal crypto pockets was blacklisted in 2025, he claimed, making him the undertaking’s first and largest sufferer. He referred to as the characteristic the other of what decentralized finance is meant to face for.

WLFI has not issued a proper public response to the allegations.

Borrowed Millions Against Its Own Tokens

The hidden management accusation arrived alongside a separate controversy that had already been gaining consideration. According to blockchain analytics agency Arkham Intelligence, WLFI deposited near 2 billion of its personal tokens into the Dolomite lending protocol and borrowed greater than $31 million in stablecoins towards them.

The undertaking now accounts for roughly 55% of Dolomite’s complete liquidity — a focus that has raised eyebrows amongst observers monitoring the platform’s publicity.

Earlier transactions pointed in an identical route. Reports point out WLFI put up $14 million value of its in-house stablecoin, USD1, to borrow $11.4 million USDC in February.

Another $12.5 million in USD1 was moved on to Coinbase Prime, bypassing the lending system completely. In complete, on-chain information reveals the undertaking used roughly 5 billion of its self-issued tokens to tug in round $75 million in exterior liquidity — a construction critics have in comparison with round financing.

Token Price Slides As Pressure Mounts

The market has not been type. WLFI’s token dropped beneath $0.08 and has shed greater than 20% over the previous 30 days. With the USD1 lending pool operating at near-full capability, customers trying to withdraw face tightening situations.

Reports additionally observe that 3 billion WLFI tokens have been moved throughout the first week of April, including to the unease.

Sun ended his public assertion with a requirement: unlock the tokens, and function with transparency. Whether the staff acts on that — or responds in any respect — stays to be seen.

Featured picture from ForkLog, chart from TradingView

Similar Posts