Justin Sun, one of the largest investors in the Donald Trump’s family’s primary cryptocurrency company, on 12 April claimed that World Liberty Financial is now misleading investors.
Sun’s allegations are a prominent instance of a crypto insider aligned with and calling out his family’s crypto dealings, which Democrats said benefited from the president’s authority, NBC reported.
Justin Sun’s allegations against World Liberty Financial
In a post on X, Sun wrote, “I have always been an ardent supporter of President Trump and his crypto-friendly policy,” and added, “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. 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.”
He further alleged that his account has been frozen since September 2025 and has been unable to sell his holdings. Citing an analysis by Bubblemaps, a blockchain tracking group, NBC reported that the value of those locked holdings has dropped by over $80 million, and now stands at roughly $43 million. Sun has previously said he invested at least $75 million in World Liberty tokens, at one stage becoming the project’s biggest backer.
He went on to say, “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.”
World Liberty Financial accuses Sun of misconduct
Responding to the allegations levelled by Sun, the World Liberty Financial slammed the billionaire, accusing him of misconduct, adding that it justified freezing his account, and appeared to hint at legal action. In 2023, the Securities and Exchange Commission (SEC) charged the billionaire investor with fraud related to cryptocurrency trading and improper promotion. In March this year, the case was dismissed after the billionaire agreed to pay a $10 million fine.
In a post on X, the World Liberty Financial said, “We have the contracts. We have the evidence. We have the truth.”
Trump family’s crypto venture under scrutiny?
World Liberty, which was co-founded by President ‘s three sons, Donald Trump Jr., Eric Trump, and Barron Trump, also lists Donald Trump as a co-founder emeritus. The company was launched in 2024 during the peak of Trump’s presidential campaign. After taking office, Trump stepped away from any formal role, and the has maintained that he does not oversee his family’s crypto interests.
The company has positioned itself as a major player in cryptocurrency and decentralized finance, with Eric Trump continuing to maintain a visible presence in the industry. He is scheduled to deliver a keynote address at the Bitcoin 2026 conference later this year.
Meanwhile, the value of World Liberty’s main token, WLFI, has dropped sharply, falling about 74 percent since August, and was trading at roughly 8 cents as of Monday. In contrast, its stablecoin, USD1, has gained traction and ranks among the top 10 most widely used stablecoins, which are designed to maintain a value equal to one US dollar. Its visibility has been boosted by high-profile partnerships and listings on major exchanges such as Binance and Kraken.
Investors concerned over World Liberty Financial’s finances
According to the reports, Sun’s comments come at a time when investors have flagged concerns over the company’s finances. In February this year, blockchain data first reported by CoinDesk showed that World Liberty borrowed $75 million from another crypto firm, Dolomite, using five percent of the total WLFI token supply as collateral. The move raised concerns on social media about whether the company could repay the loan if the value of WLFI continues to fall.
