Justin Sun accuses World Liberty Financial of a backdoor in the smart contract enabling freezing or seizure of token holders’ funds

Justin Sun, the Tron founder, says World Liberty Financial (WLFI) secretly built a backdoor into its smart contract that would allow the company to freeze or seize token holders’ funds without warning. He is demanding answers and says the alleged mechanism contradicts WLFI’s public promise of decentralisation.

Sun’s allegation: hidden blacklisting function

In a lengthy public statement published this week, Sun accused WLFI of embedding a hidden blacklisting function in the smart contract used to deploy WLFI tokens. He said the function gives the company unilateral control over investor assets.

“What was never disclosed to me or to any investor is that World Liberty embedded a backdoor blacklisting function in the smart contract used to deploy WLFI tokens,” Sun wrote. “This function gives the company unilateral power to freeze, restrict, and effectively confiscate the property rights of any token holder, without notice, without cause, and without recourse.”

Sun described the alleged feature as the opposite of decentralisation, calling it “a trap door marketed as an open door.”

What Sun says he was promised

Sun said he invested in WLFI because he believed in its public vision of a decentralised finance platform designed to remove intermediaries and bring DeFi to mainstream Americans. He also described himself as an early and enthusiastic supporter of President Trump’s pro-crypto agenda.

Sun’s account of what happened

Sun claims his WLFI wallet was frozen in 2025, which he says makes him the first and single largest victim of the project’s alleged misconduct. He said he received no warning and no explanation.

He also accused the WLFI team of extracting fees from users, secretly controlling user assets without disclosure, and treating the crypto community as a “personal ATM.” Sun said governance votes used to justify these actions were predetermined and non-transparent.

“These votes do not represent the will of the community. They represent the will of those who designed them,” he wrote.

Community reaction

Reaction to Sun’s statement was sharp and divided. Some commentators sided with him, citing what they described as a broader pattern of alleged misconduct by politically connected crypto projects during the current administration. One commentator called for a thorough investigation, describing the situation as what they said was the most blatant extraction of money from everyday Americans by any administration in recent memory.

What Sun is demanding from WLFI

Sun is calling on WLFI to unlock his frozen tokens immediately, commit to transparency, and stop what he describes as illegitimate control over investor assets. He framed his statement as a defence of blockchain principles rather than a personal grievance.

“Let’s build with integrity, not misconduct,” he wrote.

WLFI response

Whether WLFI will respond publicly remains unclear. The project had not addressed Sun’s accusations at the time of publication.