Major investor Justin Sun has accused World Liberty Financial (WLFI), a crypto venture co-founded by the Trump family, of secretly implementing a tool to unilaterally freeze and restrict user holdings of its WLFI token. Sun, a prominent crypto entrepreneur, claimed on social media platform X that the firm embedded a "backdoor blacklisting function" in the blockchain-based contracts, giving WLFI unilateral power to freeze, restrict, or confiscate token holders' property rights without cause or recourse.
Sun alleged that his own account has been frozen since September, preventing him from selling his holdings. According to blockchain tracking group Bubblemaps, the value of Sun's allegedly frozen holdings has declined by more than $80 million, to about $43 million. Sun stated he spent at least $75 million on WLFI tokens, at one point becoming the company's largest investor.
World Liberty Financial responded by accusing Sun of misconduct, suggesting his account freeze was warranted. The company also threatened legal action, stating, "We have the contracts. We have the evidence. We have the truth. See you in court pal." The Securities and Exchange Commission (SEC) previously charged Sun with fraud in 2023, a case that was dismissed after he agreed to pay a $10 million fine.
World Liberty Financial is one of several lucrative crypto businesses co-founded by the Trump family. At its 2024 launch, the company promised to empower small investors through a "decentralized finance" app, which remains unlaunched. According to a Reuters analysis, the venture generated over $460 million in income for the Trump family during the first half of 2025.
Sun, who became the largest publicly known investor in WLFI in late 2024, spent tens of millions of dollars on the token and was named an adviser to the firm. Neither Sun nor a spokesperson for him responded to requests for comment.