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Justin Sun Accuses World Liberty Financial of WLFI Token Blacklist Backdoor

Justin Sun Accuses World Liberty Financial of WLFI Token Blacklist Backdoor

World Liberty Financial’s dispute with Justin Sun has widened as on-chain analysts describe centralized freeze controls and data shows a large WLFI-backed borrowing loop that coincided with a sharp market value decline.

SUN

Fact Check
The claim is about what Justin Sun said, not whether his allegations against WLFI are ultimately correct. The Odaily item traces directly to Justin Sun’s X post at https://x.com/justinsuntron/status/2043235063132037268, establishing a primary-source path. Although X fetches failed in this run, CoinDesk’s article “Tron’s Justin Sun slams Trump-backed WLFI for treating users as ‘personal ATM’ after $75 Million DeFi loan” directly reports Sun’s statements that his WLFI wallet was frozen in 2025, that fees extracted from users were illegitimate, and that governance votes were not fair or transparent. Reuters’ “Top Trump crypto backer Justin Sun says his World Liberty tokens 'unreasonably' frozen | Reuters” and Fortune’s “Billionaire Justin Sun begs Trump-backed World Liberty Financial to unfreeze $100 million crypto stash” independently corroborate the earlier 2025 freezing/blacklisting dispute. Together, these sources strongly support that Sun made the accusations described.
Summary

Justin Sun escalated his dispute with World Liberty Financial by alleging that the protocol used centralized smart contract controls to freeze his wallet, which held part of his roughly $75 million early investment in WLFI. Sun said his wallet was blacklisted in September 2025, and the token’s subsequent decline has pushed his unrealized losses above $80 million. On-chain analysis cited in the report said WLFI’s original September 2024 token lacked blacklist functions, but those controls were added through later upgrades in late 2025, with one Externally Owned Account tied to a 3-of-5 multisignature wallet reportedly able to freeze addresses unilaterally. Separately, Chaos Labs and Arkham Intelligence data indicated that World Liberty-linked multisignature wallets deposited about 5 billion WLFI, valued near $400 million, on Dolomite and borrowed about $150 million in stablecoins through a looping strategy that concentrated liquidity risk. CryptoSlate data said WLFI’s market capitalization fell by more than $700 million over seven days to about $2.5 billion, while the token dropped to an all-time low of $0.07714 before rebounding slightly to $0.07965 as of press time. World Liberty Financial denied Sun’s claims, said it has contracts and evidence, threatened legal action, repaid $25 million of stablecoin debt, and said it plans to introduce a governance proposal for a phased token unlock for early retail buyers.

Terms & Concepts
  • smart contract: Blockchain-based code that governs how tokens or protocols operate, including transfer rules, permissions, and upgradeable controls.
  • Externally Owned Account (EOA): A standard blockchain address controlled by a private key rather than code, used by individuals or entities to initiate transactions.
  • multisignature wallet: A wallet that requires approval from multiple signers before certain actions can be executed, adding shared control over funds or protocol functions.