{"id":25721,"date":"2026-04-12T15:50:46","date_gmt":"2026-04-12T15:50:46","guid":{"rendered":"https:\/\/bitunikey.com\/news\/justin-sun-accuses-wlfi-of-hidden-token-freeze-backdoor\/"},"modified":"2026-04-12T15:50:55","modified_gmt":"2026-04-12T15:50:55","slug":"justin-sun-accuses-wlfi-of-hidden-token-freeze-backdoor","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/justin-sun-accuses-wlfi-of-hidden-token-freeze-backdoor\/","title":{"rendered":"\u00a0Justin Sun accuses WLFI of hidden token freeze backdoor"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p><strong>Justin Sun has accused World Liberty Financial, or WLFI, of hiding controls that could freeze token holders\u2019 wallets. <\/strong><\/p>\n<div id=\"cn-block-summary-block_452497a026202eb6de1ead640fe5b081\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Justin Sun said WLFI hid blacklist controls that could freeze wallets without notice or recourse.<\/li>\n<li>Onchain data tied the project to large token-backed borrowing that drew fresh criticism from observers.<\/li>\n<li>WLFI faced added pressure as token prices fell and liquidity concerns deepened during controversy again.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>The claims add new pressure to the project as onchain activity, borrowing patterns, and token losses draw more attention.<\/p>\n<p>Sun said he backed WLFI because it presented itself as a decentralized finance platform built to expand financial access. He wrote that the project later revealed a very different structure, one that gave the company direct control over token holders\u2019 access.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>In his statement, Sun <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/x.com\/justinsuntron\/status\/2043234272622883074?s=20\" target=\"_blank\">claimed<\/a> the WLFI smart contract contained a \u201cbackdoor blacklisting function.\u201d He said that feature could let the company \u201cfreeze, restrict, and effectively confiscate\u201d assets without notice or recourse. No response from WLFI was included in the material provided.<\/p>\n<h1 class=\"wp-block-heading\"><strong>Sun says his wallet was blacklisted<\/strong><\/h1>\n<p>Sun said he was \u201cthe first and single largest victim\u201d of the alleged blacklist system. He claimed WLFI blocked his wallet in 2025 and said the action violated investor rights and basic blockchain standards tied to fairness and transparency.<\/p>\n<p>He also challenged the project\u2019s governance process. Sun said votes used to support these actions were not fair or transparent. He argued that key facts were withheld from voters and that participation was limited before outcomes were decided.<\/p>\n<p>Moreover, the dispute comes as WLFI also faces questions over its use of self-issued assets in lending activity. The project committed large amounts of its own tokens and stablecoin to secure outside liquidity.<\/p>\n<p>Blockchain data cited in the report showed that WLFI used around $14 million in USD1 to borrow about $11.4 million in USDC in February. Other reported transfers and deposits later pushed total borrowing above $75 million, while the project\u2019s presence on Dolomite grew to a large share of the protocol\u2019s liquidity.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Price pressure adds to the dispute<\/strong><\/h2>\n<p>Market data in the same report showed WLFI falling more than 21% over the past 30 days. The token traded below $0.08 as the accusations circulated and as concerns around liquidity use and withdrawals stayed in focus.<\/p>\n<p>The report also said USD1 pool utilization neared 93% and that WLFI moved 3 billion tokens in early April. Sun said the project should \u201cunlock the tokens and uphold transparency\u201d as pressure around the platform continues to build.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Justin Sun has accused World Liberty Financial, or WLFI, of hiding controls that could freeze token holders\u2019 wallets. Summary Justin Sun said WLFI hid blacklist controls that could freeze wallets&hellip;<\/p>\n","protected":false},"author":1,"featured_media":1477,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25721","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/25721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=25721"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/25721\/revisions"}],"predecessor-version":[{"id":25722,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/25721\/revisions\/25722"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/1477"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=25721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=25721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=25721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}