Justin Sun says World Liberty Financial secretly built a loophole into its smart contract that allows the company to freeze or freeze token holders’ money without warning, and he wants answers.
Founder of Tron, who invested heavily in the Trump-backed DeFi project, published a lengthy statement this week criticizing WLFI for deploying a hidden service that gives the company control over its investors’ wealth, directly contradicting its public promise.
“What was not revealed to me or to any investor is that World Liberty put a back-end service into the smart contract used to send WLFI tokens,” Sun wrote. “This act gives the company sole authority to freeze, restrict, and effectively confiscate the property rights of any person who owns the trademarks, without notice, without reason, and without reason.”
He called it the opposite of globalization. “This is a trap door that is marketed as an open door.”
What the Sun Says Has Happened
Sun said he invested in WLFI because he believed in his vision of a financial institution that would cut out middlemen and bring DeFi to more Americans. He described himself as an early and ardent supporter of pro-crypto President Trump.
He said that what he experienced was very different from what he was promised. Sun claims that his WLFI wallet was frozen in 2025, making him the first and one of the biggest stakeholders in the project. He received no warning or explanation.
He also criticized the WLFI group for charging users fees, secretly monitoring users’ assets without disclosure and viewing the crypto community as a private ATM. He has rejected the authority votes used to justify this as premeditated and non-transparent.
“These votes do not represent the will of the people, they represent the will of those who cast them,” he wrote.
Reactions to Sun’s claims were sharp and divided.
Others agreed with him, pointing to the increasingly negative nature of the politically motivated crypto projects in the current administration. One commenter said that based on the list of founders, nothing was revealed that was surprising, and called for a deeper investigation into what he described as a large sum of money from everyday Americans and managers recently.
What the Sun Wants
The Sun is calling on WLFI to immediately unfreeze its tokens, make a public commitment and stop what it describes as a commercial manipulation. He framed his statement as a defense of blockchain’s fundamental principles rather than a complaint.
“Let us build with integrity, not with error,” he wrote.
Whether WLFI will respond publicly remains to be seen. The service did not respond to the Sun’s allegations at the time of publication.
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