The public feud between World Liberty Financial (WLFI) and Justin Sun now appears headed toward legal action. Both sides are accusing each other of misconduct in the dispute. In the fresh attack, WLFI accused Sun of “playing the victim” while making “baseless allegations” to cover up his own actions.
Trump-linked firm stated that “We have the contracts. We have the evidence. We have the truth. See you in court,” to Sun. However, the Tron founder fired back at the allegations. He challenged the team to identify themselves publicly. He also accused them of secretly embedding “backdoor controls” into the protocol.
The back and forth showed a minor effect on both linked crypto projects. TRON (TRX) printed a green index while Bitcoin price dropped by more than 3% over the last 24 hours. TRX is trading at an average price of $0.322 at the press time. On the other side, WLFI price dropped by around 2% in the same period.
Can WLFI freeze funds?
Justin Sun, in a X post, alleged that the system allows WLFI to freeze investor funds “without disclosure or due process.” He added that someone should be held personally accountable.
The dispute came to light when he claimed that WLFI introduced a blacklist function into its token contracts. This happened after investors had already committed capital. Sun claims that no such mechanism was disclosed upfront.
According to reports, the original WLFI token contract launched in September 2024 did not include blacklisting or seizure features. The contract was later upgraded. A blacklist function was reportedly added in August 2025. This happened almost 11 months after Sun’s initial investment and just before trading began.
Another upgrade happened in November that introduced a “batch reallocation” mechanism. WLFI has justified it as a way to recover stolen or compromised funds.
Sun has invested around $75 million and was once the project’s largest external backer. He claims that he became a direct target of these controls after his wallet was frozen. The TRON founder described himself as the “first and single largest victim” of the system.
Sun reportedly transferred a portion of his unlocked WLFI tokens (approx 55 million). This was done shortly after the first token unlock. These tokens were reportedly moved to his exchange, HTX.
Did WLFI freeze Sun’s wallet?
The project alleges that while retail users were locking tokens, Sun may have been selling into the market through backend activity. WLFI claims it flagged this behavior internally and froze his wallet. This was done on the basis of breached contractual terms. Meanwhile, these terms still remain unclear.
The WLFI’s token distribution structure has also drawn attention. Data suggests that Sun was placed in a separate vesting category from other investors. While most participants were grouped together, he was reportedly assigned a unique category. It had 20% of his allocation unlocked upfront as a lump sum.
However, the remaining 80% appears to have no clearly defined vesting schedule months. The claimable balances are still showing zero.
Adding to concerns, the wallet freeze itself may not have required a broad consensus. Reports indicate that a single guardian address was able to blacklist Sun’s wallet. Usually, more approvals are needed for asset seizure functions.
WLFI’s own treasury activity is being scrutinized. The project is reportedly using billions of WLFI tokens as collateral on lending platforms. It allows borrowing large amounts of stablecoins and cycling liquidity through internal structures.
WLFI price is on a constant decline. It dipped by more than 53% in the last 90 days. WLFI is trading at an average price of $0.078 at the press time. It is down by 83% from its all-time high of $0.46. TRX is among the few cryptos that seem to have survived the crash. TRX price is up by more than 15% in the last 60 days.
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Source: https://www.cryptopolitan.com/wlfi-tells-justin-sun-see-you-in-court-over-crypto-feud/
