- Justin Sun accused World Liberty of hiding a backdoor that allows the protocol to freeze, censor, or seize users’ assets without transparency or due governance process.
- WLFI threatened to sue the entrepreneur for allegedly breaching their agreement and his remarks.
The war of words between Trump-backed World Liberty Financial (WLFI) and Tron (TRX) Founder Justin Sun heats up on social media. Recently, the decentralized finance (DeFi) platform clapped back at the crypto billionaire’s accusations that it was hiding a feature to control or manipulate users’ funds.
Justin Sun’s Accusations Against Word Liberty Financial
On Sunday, Sun stated that he has been a “staunch supporter” of US President Donald Trump and his crypto-friendly agenda. He also highlighted his great faith in WLFi, which was the reason why he invested a significant sum in the project.
However, the Tron founder claimed that World Liberty misled investors when it embedded a backdoor blacklist function into the smart contract that deployed WLFI tokens. He alleged that the feature lets the DeFi protocol unilaterally freeze, restrict, or seize user funds.
Sun pointed out that World Liberty’s practice is the antithesis of decentralization. He particularly considered the lack of transparency and community governance process as a trap for investors.
The Chinese-born entrepreneur reportedly injected $75 million into WLFI tokens. However, World Liberty froze his assets in September 2025 after he executed some of the tokens’ transfer into HTX, Sun’s crypto exchange.
Sun clarified that the token movement was only for custodial purposes, not to sell them. Nonetheless, World Liberty froze them, citing the entrepreneur’s breach of an existing agreement.
The high-profile crypto personality accused World Liberty of rigging the governance votes it cited as the basis for his sanctions. He said the platform deliberately withheld information from voters while limiting participation to ensure it achieved the desired, one-sided outcome.
Sun emphasized that the result did not reflect the WLFI community’s will. Hence, he urged World Liberty to unlock his tokens, uphold transparency, and stop treating the crypto community as a “personal ATM.”
World Liberty Finance Threatens Sun with Lawsuit
World Liberty didn’t take Sun’s accusations lightly. It told the public that the move was the entrepreneur’s attempt to gaslight the public, using the victim card to cover up his misconduct.
Additionally, World Liberty argued it wasn’t the first time that Sun had bent the rules to serve his own interests and make a quick buck. The company insisted that it has contracts and other evidence to prove that the investor attempted to breach his long-term agreement with them, leading to the freezing of his tokens.
The Trump-backed DeFi platform threatened to sue Sun in light of his disparaging remarks about them and refusal to honor their agreement. But then again, the entrepreneur defiantly challenged the person or group managing the World Liberty social media page on X to identify themselves so he could hold them accountable for their actions.
