TRON founder, Justin Sun, has accused Trump’s World Liberty Financial of embedding a trap in its code that permits the arbitrary freezing, restricting or confiscating the property rights of any token holder. 

Sun claims he has been a victim of the trap, alleging that his wallet was frozen back in 2025. Sun’s comments pile on as lawmakers investigate Trump’s upcoming gala, sharing concerns about political access being bought. 

What is Justin Sun criticizing WLFI’s code?

Justin Sun, the founder of the TRON blockchain (TRX), has publicly turned against World Liberty Financial (WLFI), a DeFi project associated with the Trump family. 

In a series of posts on X, Sun alleged that WLFI’s smart contract contains a hidden “backdoor blacklist function” that gives the WLFI team unilateral power. He claims they can freeze, restrict, or confiscate the property rights of any token holder “without notice, without reason, and without any avenue for recourse.”

The investor stated that this feature was never disclosed to him or other backers when he invested. He emphasized that this mechanism turns the platform into a trap for retail investors and claims he is the “first and largest victim” of this practice. 

He alleges that his personal WLFI token wallet was illegally blacklisted by the project as early as 2025. According to a previous Cryptopolitan report, Sun’s assets were blacklisted in September after he transferred roughly $9 million in WLFI tokens.

Furthermore, Sun accused the “bad actors” running the project of holding fake community votes where outcomes have already been decided, and key information is withheld from voters. He stated that the project’s leaders only represent “the will of those who designed them,” not the community.

“The WLFI team’s actions are eroding the community’s trust in the project. Unlock the tokens. Uphold transparency to the community.” Sun wrote.

Trump token prices crash

Amid these allegations, Trump-associated crypto assets are facing severe declines. The WLFI token, for instance, has plummeted nearly 65% from its peak in September 2025. The token is currently trading near $0.079. 

Cryptopolitan reported that the Official Trump memecoin (TRUMP) is in an even worse position, facing a steep decline from its January 2025 peak of around $49 to a current price of approximately $2.83. 

The latest World Liberty Financial price crash is linked to controversy surrounding how WLFI manages its treasury. On-chain data revealed that the project borrowed roughly $75 million in stablecoins using its own WLFI tokens as collateral on the Dolomite lending protocol. Critics call this “circular financing.” 

WLFI’s actions have raised concerns that if the token’s price drops further, it could potentially collapse the protocol’s stablecoin pools. Data shows that WLFI’s activity currently makes up 55% of Dolomite’s total value locked, creating a massive concentration risk. 

Democratic lawmakers like Senators Elizabeth Warren, Richard Blumenthal, and Adam Schiff are also investigating Trump, but rather than his finances, they have sent letters demanding information regarding his upcoming “Gala” for token holders scheduled for April 25 at Mar-a-Lago. 

The lawmakers are concerned that the event, which offers exclusive access to the President for top-tier token holders, is simply a way for wealthy crypto investors to buy political access and influence certain decisions. 

Following its decline and Sun’s damning allegations, the WLFI team has announced plans to organize a vote next week. The team is proposing a phased token unlock in an attempt to appease early buyers who are currently locked out of their funds. 

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