Justin Sun slams Trump-linked WLFI over hidden wallet that can freeze funds

A single external address is now the focus of concern over who ultimately controls World Liberty Financial user funds.

Tron founder Justin Sun, who also happens to be the largest investor in Trump family-linked World Liberty Financial (WLFI), has publicly demanded that the DeFi project disclose the identities behind a single anonymous wallet and a group of five members who he claims can freeze user funds.

The showdown centers on control of World Liberty’s native WLFI tokens, with Sun claiming the platform’s governance structure leaves investors exposed to unilateral decisions.

The on-chain evidence Sun points to

Sun based his claim on an analysis of WLFI’s smart contract structure, which was corroborated by blockchain researcher banteg, whose post on X on April 12 detailed the chain’s timelines. The analyst claims that the first WLFI token released in September 2024 did not have a blacklist mechanism, even though it could be upgraded.

They also say that a blacklist feature was added to the second version on August 24, 2025, 11 months after Sun invested money in the project and just a week before the tokens went on sale.

There was another upgrade in November 2025, which added what Banteg called “batch reallocation”, which they said was essentially a capture mechanism that World Liberty apparently justified at the time as a tool to recover funds from holders who were victims of phishing scams.

Banteg also looked at the acquisition structure that was specifically applied to Sun, where WLFI exclusively created a separate token category for the Tron founder, called Tier 3. According to their post, World Liberty’s other 519 investors are all in Tier 1.

The analyst added that within minutes of Sun activating his wallet, WLFI’s 3 of 5 multisig set its category 3 to allow the free transfer of 20% of its 3 billion tokens, with the crypto entrepreneur moving 55 million of WLFI, only to have his wallet frozen by an outside address acting as both guardian and signer on the 3 of 5 multisig.

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The billionaire businessman is now demanding to know who is behind this address.

“I am calling on World Liberty Financial @worldlibertyfi to publicly disclose who controls the single guardian EOA and multisig 3/5 that govern the WLFI smart contract,” he wrote in his post on X.

A legal impasse looms

According to Sun, whose involvement in WLFI began even before the project’s public launch after purchasing $75 million worth of WLFI tokens to become the project’s largest backer, an individual has the unilateral power to freeze the assets of any token holder.

That’s not what he envisioned when he invested his money in the project, having said at the time that his support was rooted in WLFI’s stated mission of bringing decentralized finance to the American mainstream. However, what he is now saying has never been disclosed to him or any other investor is the existence of a blacklist function built into the smart contract, controlled by a single person.

“Community governance and voting make no sense,” he argued. “Each proposal, each vote, each demand for decentralized decision-making is theater. »

According to him, the real power lies in the unknown external address and the multisig group 3 of 5, which do not respond to anyone. But World Liberty rejected the accusations, writing on X:

“Justin’s favorite move is playing the victim while making baseless allegations to cover up his own misconduct. We have the deals. We have the evidence. We have the truth. See you in court, buddy.”