TLDR
- Justin Sun, World Liberty Financial’s largest investor, claims the company secretly added a tool to freeze user tokens without notice
- World Liberty denied wrongdoing and responded “See you in court pal” on X
- Sun’s wallet was frozen by World Liberty in September after he appeared to move his tokens
- The WLFI token has dropped over 76% from its peak and is trading near $0.08
- World Liberty generated over $460 million for the Trump family in the first half of 2025
A dispute between crypto entrepreneur Justin Sun and Donald Trump’s World Liberty Financial has gone public, with both sides trading accusations and threats of legal action.
Sun, the founder of the Tron blockchain, is the largest known investor in World Liberty. He spent at least $75 million on WLFI tokens starting in late 2024, and was named an adviser to the company.
On Sunday, Sun posted on X claiming World Liberty had secretly embedded a “backdoor blacklisting function” in the smart contracts governing WLFI tokens. He said this gave the company the power to freeze or restrict any token holder’s assets without warning.
我一直是特朗普总统及其加密友好政策的坚定支持者。
作为World Liberty Financial的早期支持者，我在项目初期投入了大量资金，因为我相信该项目向公众展示的愿景：一个促进金融自由、去除中介、将去中心化金融的福祉带给普通民众的DeFi平台。
然而，从未有人向我或任何投资者披露的是：World…
— H.E. Justin Sun 👨🚀 🌞 (@justinsuntron) April 12, 2026
Sun called himself the “first and single largest victim” of this alleged tool. He said one person with special administrative powers had blacklisted his digital wallet.
He also accused the company of treating the crypto community as a “personal ATM” and labeled World Liberty’s leadership, which includes Trump family members, as “bad actors.”
World Liberty pushed back quickly on X, saying: “We have the contracts. We have the evidence. We have the truth. See you in court pal.” The company described Sun as someone who plays “the victim while making baseless allegations.”
Reuters said it could not verify whether the blacklisting tool exists or confirm details of Sun’s trading activity.
Background on the Freeze
Sun’s wallet was first frozen by World Liberty in September, after he appeared to begin moving large amounts of his WLFI holdings. At the time, World Liberty said it was responding to “malicious or high-risk activity.”
Sun initially called it a misunderstanding, but his tone shifted sharply this past weekend.
World Liberty’s own risk disclosures acknowledge the company can freeze wallet addresses it believes are linked to illegal activity or violations of its terms. Other crypto firms, including Tether, also hold similar freezing powers, typically used in response to illegal activity or law enforcement requests.
Token Value Has Fallen Sharply
The WLFI token fell to its lowest-ever value over the weekend, dropping to around $0.077. It is down more than 76% from its price when it became tradable last fall, and down 20% in just the past week.
In March, the SEC settled a 2023 fraud lawsuit against Sun for $10 million. The case had alleged fraud, unregistered securities sales, and hidden celebrity payments. Sun admitted no wrongdoing. The agency’s enforcement chief resigned shortly after the settlement.
Sun on Monday cited what he described as blockchain records showing his wallet was blacklisted by a single account. He did not share those records with Reuters.
