US EditionTrump-Family Backed World Liberty Financial Accused Of Facilitating Token Scandal By Crypto Billionaire
The loan pushed Dolomite’s USD1 pool to 100% utilization and briefly locked ordinary depositors out of their funds, according to the protocol.
- On Sunday, Tron founder Justin Sun publicly criticized Trump-linked World Liberty Financial after the project borrowed about $75 million in stablecoins on Dolomite, tying up user liquidity and prompting Sun to break ties.
- World Liberty Financial deposited 5 billion WLFI tokens as collateral on Dolomite to borrow the stablecoins, causing the pool's utilization to hit 100% earlier this week and temporarily locking ordinary depositors out of their funds.
- Sun claimed he is the "single largest victim" of the project's "wrongful blacklisting" of his wallet, alleging WLFI's governance votes "were not conducted through a fair or transparent process" and "key information was withheld from voters."
- WLFI defended the action as a security measure targeting 272 wallets linked to phishing and compromised support channels, insisting it "only intervenes to protect users, never to silence normal activity." Co-founder Zak Folkman did not respond to requests for comment.
- The conflict follows a freeze last September that locked Sun out of 595 million tokens worth about $107 million at the time, while the project's native WLFi token has fallen 18% to $0.079 over the past week.
27 Articles
27 Articles
Trump-Family Backed World Liberty Financial Accused Of Facilitating Token Scandal By Crypto Billionaire
Tron (CRYPTO: TRX) founder Justin Sun alleged on Sunday an ongoing “token scandal” at the Trump family-backed World Liberty Financial (WLFI) platform, which enables unilateral freezing of user assets. Sun Alleges Major Misconduct At WLFI Sun claimed on X that the company has embedded a “backdoor blacklisting function” in its smart contract. “This function gives the Company unilateral power to freeze, restrict, and effectively confiscate the prop…
Tron’s Justin Sun slams Trump-backed WLFI for treating users as ‘personal ATM’ after $75 Million DeFi loan
Once WLFI's largest outside backer, Sun is going public days after the Trump-family venture borrowed $75 million against its own token on a DeFi protocol advised by one of its own insiders.
Justin Sun, a Trump család kryptovállalkozának legnagyob ismert befektetője nyilvános vádat fogalmazott meg a World Liberty Financeallel szemben. Szerint a cég titokban olyan eszközt épitett a WLFI token okosszerződéseibe, amellyel egyoldalúan kepes befagyasztani és korlátozni a felhasználók tokenallomanyát.
Justin Sun Calls Out Trump-Linked WLFI Over Hidden Wallet That Can Freeze Funds
Tron founder Justin Sun, who also happens to be the single largest investor in the Trump family-linked World Liberty Financial (WLFI), has publicly demanded that the DeFi project disclose the identities behind a single anonymous wallet and a five-member group that he claims can freeze user funds. The confrontation is centered on the control of World Liberty’s native WLFI tokens, with Sun arguing that the platform’s governance structure leaves in…
Frozen accounts and public accusations bring movement into the case. The conflict between Justin Sun and WLFI could now end up in court. Source: BTC-ECHO BTC-ECHO
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