Justin Sun: WLFI used hidden blacklist to freeze my tokens

Justin Sun, founder of the TRON blockchain, posted on X alleging that World Liberty Financial (WLFI), a DeFi project tied to the Trump family, used a hidden smart-contract blacklist to freeze his WLFI tokens after a transfer in September 2025 of about $9 million.

Sun said WLFI’s contract contains a “backdoor blacklist function” that allows project operators to block transfers or seize assets. He wrote that the feature was never disclosed to him or other investors and that his personal WLFI wallet was blacklisted following the transfer. “They can freeze, restrict, or confiscate the property rights of any token holder without notice, without reason, and without any avenue for recourse,” he wrote.

On-chain records show Sun’s WLFI holdings were flagged after the September transfer. WLFI’s price has fallen about 65% from its peak that month and was trading near $0.079. The Official Trump memecoin, TRUMP, declined from a January 2025 high near $49 to roughly $2.83.

Data on WLFI’s treasury activity show the project borrowed about $75 million in stablecoins by posting WLFI tokens as collateral on the Dolomite lending protocol. That borrowing made WLFI-related activity roughly 55% of Dolomite’s total value locked, increasing concentration on that platform.

Sun also accused WLFI leadership of staging community votes where outcomes were predetermined and key information was withheld from token holders. He urged greater disclosure and said WLFI should reverse the blacklist actions. “Unlock the tokens. Uphold transparency to the community,” he wrote.

Separately, Democratic senators including Elizabeth Warren, Richard Blumenthal and Adam Schiff sent letters seeking information about a token-holder event scheduled for April 25 at Mar-a-Lago. The lawmakers asked whether high-tier token holders receive paid access to political figures.

WLFI’s team said it will hold a vote next week on a proposal for a phased token unlock aimed at early buyers who remain locked out. The project did not disclose full details of the vote or whether the plan would remove addresses from the alleged blacklist.