Crypto Investor at Center of Trump Corruption Allegations Now Sees Himself as ‘Victim’
Tron founder and crypto investor Justin Sun has accused Trump-affiliated World Liberty Financial of misconduct and a general lack of transparency. The early backer of the project previously sat at the heart of pay-to-play allegations involving the Trump administration’s SEC, fueled by his large investments in World Liberty Financial and the TRUMP memecoin.
Sun has zeroed in on two key issues with the project. The first is a backdoor blacklisting function built into the WLFI smart contract that lets the team freeze any holder’s tokens without notice or explanation. The second is a roughly $75 million loan the project’s treasury recently took out by pledging about five billion WLFI governance tokens as collateral on its affiliated DeFi platform Dolomite. The borrowing arrangement has drawn direct comparisons to the way Alameda Research borrowed against FTX’s proprietary FTT token ahead of the exchange’s collapse and eventual bankruptcy.
Sun has called himself the “first and single largest victim” of World Liberty Financial. In September of last year the project blacklisted roughly 545 million of his WLFI tokens after he transferred about $9 million worth amid heavy selling pressure. At the time, Sun posted publicly on X, insisting he was innocent and demanding the tokens be released. In response, World Liberty Financial posted on X, “We do not seek to blacklist anyone. We respond when alerted to malicious or high-risk activity that could harm community members.”
“I denounce the ongoing token scandals by the bad actors at WLFI . . . Every action taken by the WLFI team to extract fees from users, to secretly implant backdoor controls over user assets, to freeze investor funds without disclosure or due process, and to treat the crypto community as a personal ATM — all of these actions are illegitimate and were never authorized by any fair, transparent, or good-faith community governance process,” Sun wrote.
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