- Justin Sun has accused World Liberty Financial of violating investor rights after his WLFI tokens were frozen, demanding transparency and fairness from the Trump-backed DeFi project.
- The controversy comes as WLFI crashes over 50% in a week amid pump-and-dump allegations and growing skepticism from the crypto community.
Tron founder Justin Sun has publicly clashed with World Liberty Financial (WLFI), accusing the Trump-backed DeFi project of violating investor rights after his WLFI tokens were frozen. The dispute comes as the token suffers a steep decline, dropping more than 50% in the past week amid allegations of manipulation and unfair practices.
Sun Demands Fair Treatment
Sun revealed that WLFI blocked his wallets, citing rumors that he had dumped tokens on investors following the token’s high-profile Binance listing. He strongly rejected these accusations, insisting he has not sold any of his holdings. Instead, Sun argued that freezing his tokens amounts to an infringement of investor rights and sets a dangerous precedent for the project’s credibility.
“Tokens are sacred and inviolable; this should be the most basic value of any blockchain,” Sun wrote on X.
I call on the team to respect these principles, unlock my tokens, and let’s move forward together toward the success of World Liberty Financial.
Sun emphasized that as an early backer, he contributed both capital and strategic support with the aim of helping build a sustainable WLFI ecosystem. He warned that unilateral moves, such as blocking investor wallets, undermine trust and risk eroding long-term confidence in the project.
Pump-and-Dump Allegations Fuel Controversy
The WLFI saga began after a sharp rally driven by the Binance listing hype quickly reversed into a steep decline. The token has lost over half its value in just a week, sparking claims of a pump-and-dump scheme. Many critics in the crypto community have pointed fingers at Sun, arguing he engineered a token burn and offered a 20% APY yield plan to lure retail investors before allegedly offloading his holdings.
Sun, however, dismissed these claims, stating his blockchain addresses only conducted “general exchange deposit tests with very small amounts, followed by address dispersion,” which he said had no impact on market price. He reiterated that he has not engaged in any selling activity and, just two days prior, publicly declared he would not dump his WLFI tokens.
Still, skepticism remains high. Detractors argue that even if Sun did not directly sell into the market, his influence in promoting the project and endorsing ambitious tokenomics fueled unrealistic investor expectations, contributing to the crash.
A Test for World Liberty Financial’s Future
The fallout highlights the growing tension between project teams and major investors in the crypto sector. For World Liberty Financial, backed by the Trump family, the episode raises serious questions about fairness, transparency, and governance. By freezing one of its most prominent investor’s holdings, the project risks alienating not only Sun but also other token holders who may fear similar unilateral actions.
As Sun presses for his tokens to be unlocked, the broader crypto community is closely watching how WLFI navigates the crisis. Whether the project chooses to prioritize investor rights or stand firm against perceived manipulation could determine its future credibility in an increasingly skeptical market.
