The public feud between Justin Sun and the Trump family’s World Liberty Financial intensified over the weekend, with Sun accusing the company of embedding a secret backdoor to freeze user assets. In response, World Liberty threatened legal action and called Sun’s allegations a cover for his own misconduct, as the company’s WLFI token price plunged to a record low near $0.08.
A simmering dispute between the Trump family’s crypto firm and a major backer erupted publicly. Justin Sun, founder of the Tron blockchain, accused World Liberty Financial of misconduct over the weekend.
Sun claimed the company embedded a secret backdoor in the WLFI token’s smart contract. This allowed it to freeze any holder’s assets “without notice, without cause, and without recourse.”
He demanded World Liberty unlock all frozen tokens and disclose who controls its contracts. Sun labeled the company’s leaders as “bad actors” who “treat the crypto community as a personal ATM.”
World Liberty clapped back, refusing Sun’s demands in a statement on X. The company said, “Justin’s favorite move is playing the victim while making baseless allegations to cover up his own misconduct.”
It concluded its response with, “See you in court pal.” The controversy follows World Liberty freezing Sun’s tokens last fall after he appeared to move them.
Sun had purchased tens of millions of dollars worth of WLFI after the 2024 election. He became the single largest holder of the governance token.
Amid the feud, the WLFI token price plunged to an all-time low over the weekend. It dipped to $0.077, down 76% from its price shortly after becoming tradable.
The public clash is notable given Sun’s political ties to the Trump administration. The SEC settled a yearslong fraud case against Sun in March, a move that reportedly led to the enforcement chief’s resignation.
Democrats have used Sun as an example of what they call “Trump’s crypto corruption.” Both Sun and World Liberty may face greater scrutiny if Democrats retake Congress.
