Sun claims to be “the first and biggest victim” of WLFI.
The WLFI token fell 83% from its all-time high amid controversy over its DeFi strategy.
The team behind World Liberty Financial (WLFI), the decentralized finance (DeFi) project linked to President Donald Trump’s family, responded on April 12 to recent accusations from Justin Sun, founder of the Tron network, saying: “We’ll see you in court, friend,” which would imply the beginning of legal action against the businessman.
The founder of Tron had published a statement on X on April 11 accusing the WLFI team of having hidden a technical function that would allow investors’ tokens to be frozen and confiscated without notice or processalthough he did not attach technical evidence of this.
From WLFI they responded:
Justin’s favorite move is to play the victim while making baseless accusations to cover up his own misconduct. We have the contracts. We have the evidence. We have the truth.
WLFI on X.
Justin Sun, for his part, previously stated that “what was never disclosed, neither to me nor to any investors, is that World Liberty incorporated a backdoor blacklist function (backdoor) in the smart contract used to issue the WLFI tokens,” Sun wrote.
A backdooror backdoor, is a hidden function in a program that allows whoever controls it access or modify the system without users knowing. For Sun, “this is the opposite of decentralization. “It is a trap door sold as an open door.”
He also claimed to be “the first and only victim” of that function: as he said, your WLFI wallet was blacklisted in 2025freezing your tokens without prior notification. That claim is not independently verified in available sources.
The context preceding the accusation
Sun’s accusations come at a time of growing tension around WLFI. As reported by CriptoNoticias, the project used 5 billion WLFI tokens as collateral in the Dolomite lending protocol, where it represents more than 55% of the total liquidity, to obtain approximately $75 million in stablecoins.
This circular debt strategy, which uses assets issued by the platform itself to finance itselfgenerated widespread criticism in the community and comparisons with cases of previous collapses in DeFi.
The market reflects that distrust. The WLFI token is trading today, April 12, at USD 0.078, a 22% drop compared to the USD 0.10 that it marked on April 7, and 83% below its historical maximum of USD 0.46, recorded in September 2025, as reported by CriptoNoticias.
Justin Sun also questioned also the project governance process. “The governance votes cited to justify these actions were not conducted through a fair or transparent process. “Key information was hidden from voters, meaningful participation was restricted, and results were predetermined,” he wrote.
Sun further accused the WLFI team of “extracting fees from users, implementing hidden controls on assets, freezing funds without disclosure or process, and treating the crypto community like a personal ATM.” He closed his statement by demanding the unlocking of the tokens and transparency.