Justin Sun Accuses Trump-Backed World Liberty Financial of Token Misconduct
Trump-Family Backed World Liberty Financial Accused Of Facilitating Token Scandal By Crypto Billionaire Justin Sun
Benzinga
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Justin Sun, founder of Tron, has accused World Liberty Financial (WLFI), a platform backed by the Trump family, of facilitating a 'token scandal' by embedding a backdoor function in its smart contract that allows unilateral freezing of user assets. WLFI has threatened legal action against Sun's claims.
- 01Justin Sun alleges WLFI has a backdoor function allowing asset freezing.
- 02Sun claims to be the 'first and single largest victim' of WLFI's practices.
- 03WLFI has responded by threatening legal action against Sun's accusations.
- 04Sun's wallet was blacklisted by WLFI after a significant token transfer.
- 05WLFI's token has seen a significant decline in value over the past year.
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Justin Sun, the founder of the Tron cryptocurrency, has accused World Liberty Financial (WLFI), a platform backed by the Trump family, of engaging in unethical practices by incorporating a 'backdoor blacklisting function' in its smart contract. This function allegedly allows WLFI to freeze user assets without notice or cause, effectively confiscating property rights from token holders. Sun, who claims to be the 'first and single largest victim' of this scandal, expressed his concerns on social media, stating that these actions contradict the promises made by WLFI. In response, WLFI dismissed Sun's allegations as baseless and indicated that they might pursue legal action against him. Sun's wallet was blacklisted last year after a transfer of over $9 million worth of WLFI tokens, which he claims was misinterpreted. The WLFI token has experienced a significant decline in value, dropping more than 80% since its peak in September 2022, and currently trades at $0.07880.
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