Trump’s World Liberty Financial (WLFI) Token Plummets 76% Amid Justin Sun Fraud Allegations

TLDR

• Justin Sun, the biggest backer of World Liberty Financial, alleges the Trump-linked venture secretly installed functionality to freeze user tokens
• World Liberty rejected the accusations and posted “See you in court pal” on social media
• Sun’s digital wallet was blacklisted by World Liberty last September following apparent token transfers
• WLFI token value has plunged more than 76% from peak levels, now hovering around $0.08
• The Trump-backed crypto venture reportedly brought in over $460 million during the first six months of 2025

A bitter conflict between Tron blockchain creator Justin Sun and the Trump family’s World Liberty Financial has erupted into public view, with both parties exchanging accusations and legal threats.

Sun, who established the Tron network, represents the most significant known stakeholder in World Liberty. Beginning in late 2024, he invested a minimum of $75 million into WLFI tokens and received an advisory position within the organization.

In a Sunday post on X, Sun alleged that World Liberty had covertly implemented a “backdoor blacklisting function” within the smart contracts controlling WLFI tokens. According to Sun, this feature enabled the platform to freeze or limit any token holder’s holdings without prior notification.

Sun characterized himself as the “first and single largest victim” of this purported mechanism. He stated that an individual possessing special administrative privileges had blacklisted his cryptocurrency wallet.

He further claimed the venture was exploiting the crypto community like a “personal ATM” and branded World Liberty’s executive team, which features members of the Trump family, as “bad actors.”

Reuters reported it was unable to independently verify the existence of the alleged blacklisting mechanism or confirm specific details regarding Sun’s trading patterns.

Background on the Freeze

Sun’s wallet experienced its initial freeze from World Liberty last September, following what appeared to be significant movements of his WLFI token holdings. World Liberty defended the action at that time, stating it was addressing “malicious or high-risk activity.”

Sun originally characterized the incident as a misunderstanding, though his position changed dramatically over the recent weekend.

World Liberty’s published risk statements confirm the platform maintains authority to freeze wallet addresses suspected of connections to unlawful conduct or terms of service violations. Similar freezing capabilities exist at other cryptocurrency companies, including Tether, generally deployed in cases involving criminal activity or official law enforcement demands.

Token Value Has Fallen Sharply

The WLFI token reached its all-time low price over the weekend, sliding to approximately $0.077. The token has declined more than 76% from its valuation when trading commenced last fall, including a 20% drop over the previous seven days alone.

This past March, the SEC resolved a 2023 fraud case against Sun for $10 million. The lawsuit had contained allegations of fraud, selling unregistered securities, and concealing celebrity endorsement payments. Sun did not acknowledge any wrongdoing. The agency’s enforcement director stepped down soon after the settlement agreement.

On Monday, Sun referenced what he characterized as blockchain data demonstrating his wallet was blacklisted by a single account. He declined to provide those records to Reuters.

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