The TRON founder accused the Trump-linked DeFi project of hiding a ‘trap door’ in its token contract.
The long-simmering conflict between TRON founder Justin Sun and World Liberty Financial (WLFI) erupted into an all-out public war on Sunday, with both sides hurling accusations on X.
Sun, who invested $75 million in the DeFi venture affiliated with the Trump family, published a lengthy statement accusing WLFI of embedding a hidden blacklisting function in the WLFI token smart contract, a mechanism he said gives the project “unilateral power to freeze, restrict, and effectively confiscate the property rights of any token holder, without notice, without cause, and without recourse.”
“This is a trap door marketed as an open door,” Sun wrote.
The dispute dates back to September 2025, when WLFI blacklisted a wallet containing more than 500 million of Sun’s WLFI tokens after on-chain analysts flagged transfers routed through HTX, Sun’s crypto exchange.
WLFI responded within hours, dismissing Sun’s allegations and threatening legal action.
“Justin’s favorite move is playing the victim while making baseless allegations to cover up his own misconduct,” the project’s official account posted. “We have the contracts. We have the evidence. We have the truth. See you in court pal.”
Sun fired back minutes later, demanding that whoever was operating the account identify themselves. “As the largest investor in this project, I demand that those responsible come forward by name, instead of hiding in the shadows.”
The feud follows days of scrutiny over WLFI’s treasury operations.
Sun went on to allege that governance votes cited to justify the project’s actions “were not conducted through a fair or transparent process” and that “the outcomes were predetermined.”
He accused the team of extracting fees, implanting backdoor controls, and “treating the crypto community as a personal ATM.”
Sun was careful to separate the WLFI operators from President Trump himself, opening his statement by reaffirming support for Trump and directing criticism at “the bad actors at WLFI.”
Since the September 2025 blacklist, WLFI has fallen roughly 76% from its all-time high of $0.30 to around $0.079, per CoinGecko, hitting an all-time low just yesterday. The token tanked 18% on its first day of trading and has barely recovered since.