Key Points
- Tron founder Justin Sun alleges World Liberty Financial embedded hidden wallet-freezing capabilities in WLFI token smart contracts
- World Liberty Financial dismissed the claims and threatened legal action with “See you in court pal” response on X
- Sun’s digital wallet was restricted by World Liberty Financial in September following apparent token movements
- WLFI token value has plummeted more than 76% from its all-time high, currently trading around $0.08
- The Trump family venture reportedly earned upwards of $460 million during the first six months of 2025
An escalating confrontation between Tron blockchain creator Justin Sun and Donald Trump’s cryptocurrency venture World Liberty Financial has erupted into public view, with both parties exchanging sharp accusations and threatening courtroom battles.
Sun, who established the Tron blockchain network, represents the most significant known stakeholder in World Liberty. Beginning in late 2024, he invested no less than $75 million in WLFI tokens and subsequently received an advisory role within the organization.
This past Sunday, Sun published allegations on X asserting that World Liberty had covertly installed a “backdoor blacklisting function” within the smart contract architecture controlling WLFI tokens. According to his claims, this mechanism enables the company to unilaterally freeze or limit any token holder’s holdings without prior notification.
我一直是特朗普总统及其加密友好政策的坚定支持者。
作为World Liberty Financial的早期支持者，我在项目初期投入了大量资金，因为我相信该项目向公众展示的愿景：一个促进金融自由、去除中介、将去中心化金融的福祉带给普通民众的DeFi平台。
然而，从未有人向我或任何投资者披露的是：World…
— H.E. Justin Sun 👨🚀 🌞 (@justinsuntron) April 12, 2026
Sun identified himself as the “first and single largest victim” impacted by this purported capability. He stated that an individual possessing elevated administrative privileges had placed restrictions on his cryptocurrency wallet.
He further criticized the organization for exploiting the cryptocurrency sector as a “personal ATM” and characterized World Liberty’s executive team, which features members of the Trump family, as “bad actors.”
World Liberty Financial responded swiftly via X, declaring: “We have the contracts. We have the evidence. We have the truth. See you in court pal.” The organization portrayed Sun as someone attempting to “play the victim while making baseless allegations.”
Reuters reported it was unable to independently confirm whether such blacklisting functionality exists or validate specifics regarding Sun’s trading patterns.
Details of the Wallet Restriction
World Liberty Financial initially restricted Sun’s wallet access in September, following what appeared to be his attempts to transfer substantial quantities of his WLFI token holdings. World Liberty justified the action at that time as a response to “malicious or high-risk activity.”
Sun originally characterized the incident as a miscommunication, though his public stance became considerably more confrontational over the recent weekend.
World Liberty Financial’s own legal disclaimers acknowledge the company maintains authority to freeze wallet addresses suspected of involvement in unlawful conduct or terms of service violations. Similar freezing capabilities exist at other cryptocurrency platforms, including Tether, generally deployed in response to criminal activity or regulatory directives.
Dramatic Token Price Decline
The WLFI token reached its lowest recorded valuation during the weekend, dropping to approximately $0.077. This represents a decline exceeding 76% from its price level when trading commenced last fall, including a 20% decrease over the previous seven days alone.
The SEC concluded a 2023 fraud lawsuit against Sun in March with a $10 million settlement. That case had included allegations of fraudulent conduct, unregistered securities offerings, and undisclosed celebrity endorsement payments. Sun neither confirmed nor denied the charges. The agency’s enforcement director stepped down soon after the settlement was finalized.
On Monday, Sun referenced what he characterized as blockchain evidence demonstrating his wallet received blacklist designation from a singular account. He did not provide those records to Reuters for verification.
