Justin Sun Accuses World Liberty Financial Of Hiding Backdoor Token Freeze In $75M Deal

Markets 2026-04-14 16:30

Justin Sun Accuses World Liberty Financial Of Hiding Backdoor Token Freeze In M Deal

Justin Sun (TRX) founder and Tron blockchain architect accused World Liberty Financial of embedding a hidden blacklisting function in its WLFI token smart contract, calling the move a violation of investor rights.

Sun's WLFI Accusations

In a post on X, Sun said the Trump-backed DeFi platform gave itself unilateral power to "freeze, restrict, and effectively confiscate the property rights of any token holder, without notice, without cause, and without recourse." He claimed no investor was told about the function before committing capital.

Sun, who invested $75 million in the project, identified himself as the "first and single largest victim" after his wallet was blacklisted in 2025.

The freeze affected roughly 595 million unlocked tokens worth about $107 million at the time, according to Arkham Intelligence data.

He called WLFI's governance votes "predetermined" and said key information was withheld from participants. Sun accused the team of extracting fees without proper authorization and treating the crypto community as "a personal ATM."

Also Read: XRP Trading Volume Hits 2025 Low On Binance As Buyers Vanish

Sun's Shifting Stance on Trump Crypto

Despite his accusations, Sun described himself as "an ardent supporter of President Trump and his crypto friendly policy." He said he backed World Liberty Financial because its public pitch promised financial freedom and removal of intermediaries for mainstream Americans.

Sun demanded that the WLFI team unlock his tokens immediately. He urged the project to adopt transparency and operate with integrity rather than what he described as misconduct.

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This content is for informational purposes only and does not constitute investment advice.

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