Key Takeaways:
In Sept, World Liberty Financial froze 595M WLFI tokens, prompting Justin Sun to demand immediate unlocks. After his $30M buy in 2024, Tron’s Justin Sun claims secret blacklists will ruin future market confidence. With 2.4B locked WLFI seized, Sun warns flawed governance votes will deter future cryptocurrency investors.
Justin Sun Accuses Trump-Linked World Liberty Financial of Being Illegitimate and Extractive
The recent movements of wallets tied to World Liberty Financial, a cryptocurrency project associated with President Donald Trump, have sparked a myriad of rejection reactions on social media.
Justin Sun, founder of the Tron project, denounced several actions taken by World Liberty token holders, qualifying them as illegitimate and extractive. Sun, who clarified he has always been supportive of Trump’s crypto-friendly policies, was an early backer of World Liberty Financial, putting $30 million behind the project back in 2024 and becoming an advisor shortly after.
Sun revealed that it had never been disclosed to any investor that the project had a “backdoor blacklisting function” embedded in its smart contracts, giving issuers the ability to freeze, restrict, and effectively confiscate tokens owned by any investors without prior notice or justification.
The crypto entrepreneur was the victim of one of the largest blacklisting actions of World Liberty Financial in September, locking 595 million WLFI tokens that have been losing value ever since, and nearly 2.4 billion locked WLFI tokens, which were still under vesting at the time of the incident.
The platform stated that these measures were taken as an answer to “malicious or high-risk activity that could harm community members.”
Sun stressed that each one of these actions taken against investors was “illegitimate” and “never authorized by any fair, transparent, or good-faith community governance process.”
He specified:
“The governance votes cited to justify these actions were not conducted through a fair or transparent process. Key information was withheld from voters, meaningful participation was restricted, and the outcomes were predetermined.”
Finally, Sun called for unlocking the tokens blocked from him and other investors, stressing that these actions eroded trust in the project and that investors opposed “every one of these actions in the strongest possible terms.”
