News 
Coin Information 
About us 
Customer Service 
World Liberty Financial (WLFI) is taking legal action against Justin Sun, the founder of Tron and the project's largest private investor, after he went public with explosive allegations against the DeFi platform. The escalating dispute marks a dramatic collapse of what was once a high-profile partnership.
Sun initially invested $30 million in WLFI back in November 2024, eventually growing his total commitment to over $75 million. He was even appointed as an advisor to the project in December 2024, shortly after WLFI reshuffled its Bitcoin holdings by swapping cbBTC for WBTC. However, the relationship took a sharp turn in September 2025 when WLFI blacklisted Sun's wallet following on-chain activity that showed outbound token transfers, including one transaction valued at approximately $9 million.
Sun is now publicly claiming that WLFI embedded an undisclosed freeze function into its token smart contract, a mechanism he alleges gives the project unilateral power to lock any holder's assets without prior notice or legal recourse. He describes himself as the first and most severely affected victim of this practice. With his holdings frozen and the WLFI token down roughly 76% from its all-time high of $0.30, Sun has reportedly lost around $60 million in value, leaving him unable to sell, hedge, or adjust his position in any way.
WLFI has fired back aggressively, dismissing Sun's claims as baseless and accusing him of playing the victim to deflect attention from his own alleged misconduct. The project stated it has the contracts and evidence to support its position, signaling the matter is now heading to court.
Adding further scrutiny to the project, a DeFi analyst raised conflict-of-interest concerns after discovering that Dolomite, a lending protocol allowing $292 million in borrowing against $400 million in WLFI collateral, is led by a founder who also serves as WLFI's chief technology officer. At the time of writing, WLFI tokens were trading at $0.079.
Comment 0