Justin Sun Accuses Trump-Backed WLFI of Freezing $75 Million in Tokens

The feud escalated into a public legal battle after Sun accused WLFI of embedding a hidden backdoor blacklist function.

“WLFI threatens legal action against Justin Sun after he accuses Trump-linked project of deceptive DeFi deals Trump-backed crypto project says it has ‘contracts’ and ‘evidence’ after Sun accused it of exploiting users”

@coindesk

Sun called himself the first and single largest victim of the function, referencing his own frozen wallet.

@coindesk

WLFI responded by accusing Sun of playing the victim and declared, See you in court pal.

The clash marks a sharp break from last year, when WLFI credited Sun with helping rescue the project.

The dispute unfolded against a backdrop of severe financial strain for WLFI.

Sun detailed how WLFI secretly implanted backdoor controls over user assets.

He challenged the legitimacy of WLFI's governance model, alleging predetermined outcomes.

Bitcoin World

The blacklist function stands in direct opposition to the ethos of decentralization.

Sun demanded that those responsible come forward by name.

The dispute raised questions about conflicts of interest involving Dolomite.

WLFI's token price dropped by 18% in one week.

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Approximately 600,000 wallets were reportedly impacted.

User losses were estimated at $3.87 billion.

Sun's frozen WLFI stash lost more than $80 million in value since the freeze.

The incident underscores the tension between DeFi's promise and reality.