World Liberty Financial Dares One Of Its Biggest Backers to Court
World Liberty Financial has challenged its largest non-public investor to a authorized combat after he publicly accused the venture of embedding a hidden freeze operate in its token contract.
The dispute marks a pointy flip in a relationship that started with a $30 million funding in November 2024.
World Liberty Financial Turns on Its Biggest Backer: See You in Court
The investor, Tron founder Justin Sun, poured over $75 million into the platform and describes himself as the primary and single largest sufferer of the venture’s blacklisting apply.
In December 2024, the World Liberty Financial cleared its cbBTC portfolio of 102.9 tokens value $10.4 million to purchase 103.15 WBTC.
The following day, Sun was named an advisor to WLFI, highlighting his rising curiosity within the DeFi venture and the rising relationship between WLFI and WBTC.
Sun’s allegations middle on a wise contract operate he says was by no means disclosed to buyers. He claims the mechanism grants WLFI unilateral power to freeze or limit any token holder’s belongings with out discover or recourse.
“Does anybody nonetheless consider Justin Sun? Justin’s favourite transfer is taking part in the sufferer whereas making baseless allegations to cowl up his personal misconduct. Same playbook, totally different goal. WLFI isn’t the primary. We have the contracts. We have the proof. We have the reality. See you in courtroom pal,” wrote WLFI.
His pockets was blacklisted in September 2025 after on-chain information confirmed outbound token transfers, together with one value $9 million.
Sun’s frozen holdings have since misplaced roughly $60 million in worth because the WLFI token value collapsed, leaving him unable to promote, hedge, or rebalance his publicity. WLFI has maintained the freeze was a safety measure, not a focused motion.
The dispute has drawn consideration to a separate however associated concern. A DeFi analyst flagged that Dolomite, a lending protocol, is permitting $292 million to be borrowed against $400 million in WLFI collateral, with $158 million in USD1 already drawn.
The analyst famous that Dolomite’s founder can be WLFI’s CTO, elevating direct conflict-of-interest questions.
WLFI tokens hit a record low of $0.077 on April 11 and traded at $0.079 at press time, down roughly 76% from their all-time high of $0.30 set final September.
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