Crypto billionaire Justin Sun accused World Liberty Financial, a venture co-founded by President Donald Trump’s family, of locking investors out of their accounts and exerting unilateral control over user assets. The dispute centers on Sun’s claim that the platform has blacklisted his wallet since 2025, preventing him from liquidating his holdings.
Independent analysis from the blockchain tracking firm Bubblemaps indicates that the value of Sun’s stake has dropped from roughly $123 million to $43 million during the period his account has been frozen. Sun, who previously identified as a supporter of Trump’s crypto policies, characterized the platform’s operations as a "trap door" that contradicts the core principles of decentralization.
“I am the first and single largest victim, as a result of their wrongful blacklisting of my WLFI token wallet,” Sun wrote in a post on X. He alleged that the company has implemented secret backdoor controls to freeze funds without due process, treating the user base like a "personal ATM."
Legal threats and financial instability
World Liberty Financial issued a sharp rebuttal, accusing Sun of misconduct and threatening legal action. The company pointed to a 2023 civil fraud lawsuit filed against Sun by the Securities and Exchange Commission, which he settled last month for $10 million.
“Justin’s favorite move is playing the victim while making baseless allegations to cover up his own misconduct,” the company stated on X. World Liberty officials maintained that they have the contracts and evidence to support their position, inviting a court confrontation.
The venture, which lists Donald Trump as co-founder emeritus, has faced significant market pressure. The price of its primary token, WLFI, has fallen 74 percent, currently trading at approximately 8 cents. Concerns have also mounted regarding the company’s debt structure after it borrowed $75 million from the crypto group Dolomite, using 5 percent of its total WLFI token supply as collateral.
Company officials insisted last week that they are not at risk of liquidation. They claimed that if market conditions worsen, they would simply supply additional collateral to maintain the loan.
However, industry experts remain skeptical of the platform's internal governance. Austin Campbell, a consultant and instructor at New York University, noted that the company’s current practices would trigger immediate regulatory scrutiny if mirrored in traditional financial markets. "If you took this conduct and translated it to traditional markets, you would have some problems," Campbell said.
