Trump’s World Liberty Financial (WLFI) Token Plummets 76% Amid Justin Sun Fraud Allegations

Table of Contents A bitter conflict between Tron blockchain creator Justin Sun and the Trump family’s World Liberty Financial has erupted into public view, with both parties exchanging accusations and legal threats. Sun, who established the Tron network, represents the most significant known stakeholder in World Liberty. Beginning in late 2024, he invested a minimum of $75 million into WLFI tokens and received an advisory position within the organization. In a Sunday post on X, Sun alleged that World Liberty had covertly implemented a “backdoor blacklisting function” within the smart contracts controlling WLFI tokens. According to Sun, this feature enabled the platform to freeze or limit any token holder’s holdings without prior notification. 我一直是特朗普总统及其加密友好政策的坚定支持者。 作为World Liberty Financial的早期支持者，我在项目初期投入了大量资金，因为我相信该项目向公众展示的愿景：一个促进金融自由、去除中介、将去中心化金融的福祉带给普通民众的DeFi平台。 然而，从未有人向我或任何投资者披露的是：World… — H.E. Justin Sun 👨‍🚀 🌞 (@justinsuntron) April 12, 2026 Sun characterized himself as the “first and single largest victim” of this purported mechanism. He stated that an individual possessing special administrative privileges had blacklisted his cryptocurrency wallet. He further claimed the venture was exploiting the crypto community like a “personal ATM” and branded World Liberty’s executive team, which features members of the Trump family, as “bad actors.” World Liberty responded swiftly on X, stating: “We have the contracts. We have the evidence. We have the truth. See you in court pal.” The platform portrayed Sun as someone playing “the victim while making baseless allegations.” Reuters reported it was unable to independently verify the existence of the alleged blacklisting mechanism or confirm specific details regarding Sun’s trading patterns. Sun’s wallet experienced its initial freeze from World Liberty last September, following what appeared to be significant movements of his WLFI token holdings. World Liberty defended the action at that time, stating it was addressing “malicious or high-risk activity.” Sun originally characterized the incident as a misunderstanding, though his position changed dramatically over the recent weekend. World Liberty’s published risk statements confirm the platform maintains authority to freeze wallet addresses suspected of connections to unlawful conduct or terms of service violations. Similar freezing capabilities exist at other cryptocurrency companies, including Tether, generally deployed in cases involving criminal activity or official law enforcement demands. The WLFI token reached its all-time low price over the weekend, sliding to approximately $0.077. The token has declined more than 76% from its valuation when trading commenced last fall, including a 20% drop over the previous seven days alone. This past March, the SEC resolved a 2023 fraud case against Sun for $10 million. The lawsuit had contained allegations of fraud, selling unregistered securities, and concealing celebrity endorsement payments. Sun did not acknowledge any wrongdoing. The agency’s enforcement director stepped down soon after the settlement agreement. On Monday, Sun referenced what he characterized as blockchain data demonstrating his wallet was blacklisted by a single account. He declined to provide those records to Reuters.