World Liberty Financial (WLFI) Is Crashing and Its Largest Backer Just Called the Trump Family “Bad Actors”

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.

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.”

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.

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