On July 22, TRON founder Justin Sun publicly accused World Liberty Finance (WLFI), a DeFi project backed by the Trump family, of hiding a secret blacklist function in its smart contract. Sun, who claims to be the project's largest investor, says he was blindsided by the freeze.
595M Tokens Frozen Without Warning
Sun alleges that in September 2025, the WLFI team used an undisclosed blacklist to freeze 595 million WLFI tokens in his wallet. At the time of the freeze, those tokens were worth around $700 million. Now, after a 75% crash from an all-time high of $0.46, the same batch trades near $0.079 and is worth just $45 million.
The TRON founder described the situation as a "trap door marketed as an open door." He accused the project's anonymous team of treating investor funds like a personal ATM and demanded they reveal their identities.
WLFI Fires Back: 'See You in Court'
The WLFI team responded aggressively, dismissing Sun's claims as baseless and accusing him of playing the victim. They said they have on-chain proof that Sun tried to move tokens in a way that endangered the community. The statement ended with a clear challenge: "See you in court, pal" — setting the stage for a high-profile crypto legal battle.
Political Backlash and Price Collapse
WLFI carries heavy political baggage: Donald Trump serves as its "Chief Crypto Advocate." The blacklist scandal has drawn mainstream media attention beyond crypto circles. The token's price has collapsed from $0.46 to $0.079, with investors fleeing amid fears of a smart contract backdoor used for hidden control.
This article is for informational purposes only and does not provide financial or legal advice.