Tron founder Justin Sun has publicly criticized World Liberty Financial, a DeFi platform co-founded by the sons of former U.S. President Donald Trump, over its token lock-up policies and governance process. Sun, a significant early investor, alleged a lack of transparency in a key vote and condemned the platform for using its own WLFI tokens as loan collateral. The dispute coincides with the WLFI token hitting an all-time low of $0.07, sparking broader community backlash and prompting WLFI to threaten legal action against Sun.
Justin Sun, founder of the Tron blockchain, has criticized World Liberty Financial over lengthy lock-up periods for its governance token. Sun stated he invested significant capital and called a March governance vote, where over 76% of voting tokens came from just 10 wallets, non-transparent.
In a social media post, Sun wrote “The governance votes cited to justify the above actions were not conducted through fair or transparent procedures.” He claimed key information was withheld and outcomes were predetermined.
World Liberty Financial responded by threatening legal action. The platform stated, “Justin’s favorite move is playing the victim while making baseless allegations to cover up his own misconduct,” as mentioned in their post.
The controversy escalated as the WLFI token price sank to an all-time low of $0.07. This followed community discovery that the platform was using WLFI tokens as collateral to borrow stablecoins.
World Liberty Financial confirmed it acts as an “anchor” borrower on Dolomite, a DeFi platform co-founded by its CTO. It stated this generates yield and value, claiming to be one of the largest participants in its own ecosystem.
Sun condemned the practice, arguing the community was being treated as a personal ATM without proper authorization. The incident has fueled renewed criticism of former President Donald Trump’s involvement in cryptocurrency ventures.
