Key investor Justin Sun accuses Trump family's crypto firm of freezing token holders' rights: Here's what he said
Justin Sun accused World Liberty Financial, tied to Donald Trump’s family, of misleading investors and freezing his assets. The firm denies wrongdoing, while concerns grow over its falling WLFI token value, past SEC scrutiny, and a $75 million loan backed by its tokens.
Justin Sun, one of the largest investors in the US President Donald Trump's family-owned cryptocurrency company, on 12 April claimed that World Liberty Financial is now misleading investors.
Sun's allegations are a prominent instance of a crypto insider aligned with Trump calling out his family's crypto dealings, which Democrats said benefited from the president's authority, NBC reported.
Justin Sun's allegations against World Liberty Financial
In a post on X, Sun wrote, "I have always been an ardent supporter of President Trump and his crypto-friendly policy," and added, “What was never disclosed — to me or to any investor — is that World Liberty embedded a backdoor blacklisting function in the smart contract used to deploy WLFI tokens. This function gives the Company unilateral power to freeze, restrict, and effectively confiscate the property rights of any token holder, without notice, without cause, and without recourse.”
He further alleged that his account has been frozen since September 2025 and has been unable to sell his holdings. Citing an analysis by Bubblemaps, a blockchain tracking group, NBC reported that the value of those locked holdings has dropped by over $80 million, and now stands at roughly $43 million. Sun has previously said he invested at least $75 million in World Liberty tokens, at one stage becoming the project’s biggest backer.
He went on to say, "Every action taken by the WLFI team to extract fees from users, to secretly implant backdoor controls over user assets, to freeze investor funds without disclosure or due process, and to treat the crypto community as a personal ATM — all of these actions are illegitimate and were never authorized by any fair, transparent, or good-faith community governance process."
Firm accuses Sun of misconduct
Responding to the allegations levelled by Sun, the World Liberty Financial slammed the billionaire, accusing him of misconduct, adding that it justified freezing his account, and appeared to hint at legal action. In 2023, the Securities and Exchange Commission (SEC) charged the billionaire investor with fraud related to cryptocurrency trading and improper promotion. In March this year, the case was dismissed after the billionaire agreed to pay a $10 million fine.
In a post on X, the World Liberty Financial said, "We have the contracts. We have the evidence. We have the truth."
Trump family's crypto venture under scrutiny?
World Liberty, which was co-founded by President Donald Trump's three sons, Donald Trump Jr., Eric Trump, and Barron Trump, also lists Donald Trump as a co-founder emeritus. The company was launched in 2024 during the peak of Trump’s presidential campaign. After taking office, Trump stepped away from any formal role, and the White House has maintained that he does not oversee his family’s crypto interests.
The company has positioned itself as a major player in cryptocurrency and decentralized finance, with Eric Trump continuing to maintain a visible presence in the industry. He is scheduled to deliver a keynote address at the Bitcoin 2026 conference later this year.
Meanwhile, the value of World Liberty’s main token, WLFI, has dropped sharply, falling about 74% since August, and was trading at roughly 8 cents as of Monday. In contrast, its stablecoin, USD1, has gained traction and ranks among the top 10 most widely used stablecoins, which are designed to maintain a value equal to one US dollar. Its visibility has been boosted by high-profile partnerships and listings on major exchanges such as Binance and Kraken.
Investors concerned over World Liberty Financial's finances
According to the reports, Sun's comments come at a time when investors have flagged concerns over the company's finances. In February this year, blockchain data first reported by CoinDesk showed that World Liberty borrowed $75 million from another crypto firm, Dolomite, using 5% of the total WLFI token supply as collateral. The move raised concerns on social media about whether the company could repay the loan if the value of WLFI continues to fall.
About the Author
Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.
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