TRON founder Justin Sun publicly accused DeFi project World Liberty Financial (WLFI▼$0.0598).
WLFI is linked to President Donald Trump’s family. According to Sun, the project has a hidden blacklist function in the WLFI token’s smart contract.
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He claims that this function allows the project team to unilaterally freeze, restrict, and effectively confiscate investor tokens without notice or appeal. He called himself the “first and only largest victim” of this mechanism, noting that his WLFI wallet was frozen as early as September 2025.
WLFI’s Reaction
World Liberty Financial representatives responded harshly. The project’s official account stated that Sun is “playing the victim by making unfounded allegations to cover up his own wrongdoing.” The post ended with the phrase “See you in court, pal,” indicating readiness for litigation.
Sun responded by demanding that responsible parties come out of the shadows and identify themselves publicly. He emphasized that as one of the largest investors, he has a right to transparency.
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Background of the Conflict
The conflict escalated after it became known that WLFI’s treasury used its own governance tokens as collateral to raise approximately $75 million in stablecoins through the Dolomite protocol. Some funds were transferred to Coinbase Prime. WLFI explained the actions as “anchor borrowing” to generate yield, but this drew sharp criticism from the community and sent WLFI’s price to an all-time low around $0.08.
Sun also criticized long token lock-up periods and a lack of transparency in the project’s governance voting process. According to him, key decisions were made without proper investor disclosure, and voting outcomes were predetermined.
Sun previously invested approximately $75 million in WLFI and was announced as a project advisor. Analysts estimate the value of his frozen tokens has now declined by more than $80 million.
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