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Justin Sun and World Liberty Financial Trade Blows in Escalating Public Feud

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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.

WLFI Chart

Bitcoin Miners Face a Tougher Road to the 2028 Halving

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Bitcoin’s fifth halving is roughly two years away, and the mining sector is heading into it with far less margin for error than in 2024, as higher costs, tighter energy markets and clearer regulation reshape the industry.

At the last halving in April 2024, Bitcoin (BTC) traded at around $63,000 as rewards fell from 6.25 BTC to 3.125 BTC per block, according to Coingecko. In April 2028, at the next halving, miners face higher input costs for half the new coins, as rewards drop to 1.5625 BTC. That looks tougher in a world of record hashrate, higher energy prices and more selective capital.

Energy security has also become a strategic concern after geopolitical shocks jolted fuel and power markets, while regulators from Washington to Europe move from ad-hoc guidance to formal regimes for custody and licensed institutional platforms.

Those pressures are forcing miners to behave less like pure Bitcoin proxies and more like energy and infrastructure companies, monetizing reserves, cutting costs and rethinking capital allocation ahead of the April 2028 Halving.

The shift is also changing how investors assess the sector, with capital increasingly flowing toward operators that can secure long-term power and build infrastructure that extends beyond mining alone.

Balance sheets show tougher pre-halving cycle

Miners are already adjusting. MARA Holdings sold more than 15,000 Bitcoin in March to reduce leverage, Riot Platforms sold over 3,700 BTC in the first quarter, Cango sold 2,000 BTC to pay down Bitcoin-backed debt, and Bitdeer said its Bitcoin holdings had fallen to zero as of Feb. 20.

Bitcoin Hashrate 2026. Source: CoinWarz

Behind those sales is a broader reset in how miners think about hardware, power and capital. The 2028 halving arrives in “an environment that looks almost nothing like 2024,” Juliet Ye, head of communications at Cango, told Cointelegraph.

She pointed to a widening efficiency gap that is “forcing real decisions around fleet upgrades” and a shift toward long-term energy contracts across multiple regions rather than chasing cheaper tariffs.

“There is less room in the middle now,” she said. “Operators with scale and diversification will be fine. Those without will find the next halving very difficult.”

GoMining struck a similar note. CEO Mark Zalan told Cointelegraph that “capital discipline now matters more than hashrate maximalism” and that new deployments now have to clear tougher return thresholds.

Related: Mining companies move deeper into AI, HPC as MARA may sell Bitcoin

From a mining pool’s perspective, some of the underlying dynamics remain familiar even as the pressure grows. “There is actually very little fundamental difference between this mining cycle and previous ones,” Alejandro de la Torre, co-founder and CEO of Stratum V2 pool DMND, told Cointelegraph. “The same dynamics repeat.”

He expects mining hotspots to reach their peak, then realign, as “no region keeps dominance for long,” opening the door for more decentralization as mid-size miners expand into new energy partnerships.

Related: Genius Group liquidates Bitcoin treasury to pay $8.5M of debt

Business models shift beyond pure block rewards

The economics around the next halving are also shifting away from pure block rewards, which is a “thinner business than it used to be,” Zalan said. He predicted stronger operators will look closer to power and data center businesses, and earn additional revenue through curtailment, grid services and heat reuse.

Cango is already building toward that model. “The facilities that will matter in five years are the ones that can do more than one thing,” Ye said, using mining to fill capacity while positioning sites to toggle between AI workloads and hashpower.

Bitcoin Halving Countdown. Source: CoinGecko

Regulation, once viewed mainly as an overhang, is increasingly part of the investment case. Zalan pointed to more specific rules on custody and banking access in the United States, alongside the European Union’s Markets in Crypto Assets (MiCA) regime and new exchange-traded funds (ETFs), derivatives and settlement rails out of Hong Kong, arguing “capital moves faster when those rules are clear and usable.”

Zalan said that backdrop is shaping both how miners finance themselves and how institutions position for the next issuance cut. He said he does not believe the market has “fully priced the next halving,” arguing that scarcity will meet a “much stronger ecosystem around Bitcoin by the time 2028 arrives.”

Ye sees investors already re-rating miners that lock in high-performance compute contracts, with those operators trading at “more than double the revenue multiple of pure-play miners,” while de la Torre believes supporting large established operators is “no longer the only logical path.”

If the 2024 cycle rewarded miners that rode Bitcoin’s price strength, the run into 2028 may favor operators that can manage debt, lock in power and build infrastructure that earns beyond block subsidies.

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