Justin Sun Accuses World Liberty of Secret WLFI Freeze

Justin Sun, founder of the Tron blockchain, accused World Liberty Financial on Sunday of embedding a secret backdoor in the WLFI token’s smart contract that allows the company to freeze holders’ tokens. The allegation followed a weekend drop in WLFI’s price to about $0.077.

Sun became the largest WLFI holder after buying tens of millions of dollars of the token following President Donald Trump’s 2024 re-election. World Liberty blacklisted Sun’s wallet and froze his WLFI in September when he appeared to move millions of dollars’ worth of tokens. Sun previously maintained he was not moving the tokens to sell them.

On X, Sun wrote that the smart contract contains a hidden control that lets World Liberty freeze any holder’s tokens “without notice, without cause, and without recourse.” He demanded that the company unlock frozen tokens and disclose who operates and controls the smart contracts. He also accused company leaders, including members of the Trump family, of treating “the crypto community as a personal ATM” and called them “bad actors.”

World Liberty rejected the accusations in a company statement, calling Sun a wrongdoer. The firm wrote, “Justin’s favorite move is playing the victim while making baseless allegations to cover up his own misconduct,” and added, “See you in court pal.” The company referred inquiries to its posts on X.

WLFI fell as low as $0.077 on Saturday and was trading just under $0.08, down about 20% over the prior week and more than 76% from its price shortly after it became tradable last fall. The token’s market capitalization dropped by roughly $427 million to about $2.58 billion after World Liberty said it is preparing a proposal to unlock WLFI for early holders while defending roughly $150 million in stablecoin loans.

The token began as a non-transferable digital asset last year and later became tradable with governance features that allow holders to vote on company proposals. Sun’s purchases and the earlier freeze of his holdings have kept the dispute visible because of his profile in the crypto industry and his political connections.

Sun settled a civil case with the Securities and Exchange Commission earlier this year; the agency’s enforcement chief later resigned. Representatives for Sun did not immediately respond to requests for comment. A World Liberty spokesperson referred questions to the company’s posts on X.