Amid the ongoing FUD surrounding the crypto project backed by US President Donald Trump, a new feud is heating up online. On April 12, TRON founder Justin Sun went after X and criticized Trump’s World Liberty Financial (WLFI), noting:
World Liberty has integrated a backdoor blacklist function into the smart contract used to deploy WLFI tokens.
Explaining his position, Sun highlighted how the aforementioned feature gave the company the solitary power to “effectively freeze, restrict and confiscate the property rights of any token holder, without notice, without cause and without recourse.”
What is behind this fueled frustration?
Needless to say, this kind of frustration comes from the fact that Sun is a strong advocate and significant investor in WLFI. What attracted him most about WLFI was:
A decentralized finance platform that would foster financial freedom, cut out middlemen, and bring the benefits of DeFi to mainstream Americans.
On top of that, he was also one of the biggest supporters of “President Trump and his pro-cryptocurrency policies.”
Therefore, expressing further frustration over the matter, Sun noted:
It is the opposite of decentralization. This is a hatch marketed as an open door.
Trump’s WLFI hits back at Justin Sun allegations
Despite being the largest holder since 2025, Sun’s remarks were immediately countered by the WLFI team when they argued:
Justin’s favorite move is to play the role of the victim while making baseless allegations to cover up his own misconduct.
The team resisted Sun’s allegations and was even willing to present the contract and evidence to prove the truth.
Further in his defense, Trump’s crypto project even went ahead and posed a legal threat to Sun and said:
See you in court, buddy.
As expected, the TRON founder did not remain calm and responded by saying:
The result?
Needless to say, all this bickering has led to increased social activity on $WLFI, as LunarCrush reports.
What is the context?
The reason behind this increase in mentions was not only the ongoing feud, but WLFI’s recent deposit of $5 billion worth of WLFI tokens (worth $429 million) as collateral on Dolomite. Additionally, the project had also borrowed $75 million in USDC, which pushed its lending rates up to a lucrative 13.5%.
In turn, this led to the depletion of the liquidity pool, preventing ordinary depositors from withdrawing their stablecoins.
However, shortly after, WLFI announced that it had repaid $25 million in 1 USD.
Interestingly, amid all these efforts, the WLFI token was showing signs of improvement as it was trading at $0.07997 at press time, following a 1% rise in the last 24 hours.
However, its weekly decline of over 18% and monthly decline of over 22% still raise apprehensions, as confirmed by the RSI and MACD indicators.
Final summary
- Justin Sun criticizes Trump’s WLFI, increasing FUD in the market, but WLFI shuts down Sun with legal threats.
- WLFI token price shows modest signs of improvement, but bearish sentiment remains intact.
