Allegations of misconduct have emerged from Justin Sun, founder of Tron and a notable crypto investor, against World Liberty Financial (WLFI), linked to former President Trump. Sun claims a lack of transparency in the company's operations, raising concerns about a specific function in the WLFI smart contract that allows the team to freeze holders' tokens without prior notice.
Additionally, WLFI has recently secured a loan of approximately $75 million by using around five billion WLFI governance tokens as collateral on its DeFi platform, Dolomite. This borrowing strategy has drawn parallels to the practices of Alameda Research prior to the FTX collapse. Sun, who has heavily invested in WLFI, described himself as the "first and single largest victim" of the project, particularly after the company blacklisted roughly 545 million of his tokens following a transfer worth about $9 million.
In a public statement, Sun condemned WLFI's actions, claiming they lack legitimacy and transparency, while WLFI has countered by questioning Sun's credibility on social media, asserting that they possess contracts and evidence to support their position.