Justin Sun slams WLFI over secret token freeze, $75M loss
6.6 Security Justin Sun accuses WLFI of freezing his $75M investment via a hidden blacklist, sparking a DeFi transparency controversy and concerns over governance.
Justin Sun has accused World Liberty Financial (WLFI) of embedding a hidden blacklist function in its token smart contract, enabling the company to freeze investor assets without prior notice or disclosure. Sun, who invested over $75 million in WLFI, claims his wallet was blacklisted in 2025, resulting in a significant paper loss and igniting a major controversy over transparency and governance in the DeFi sector. He alleges that this critical feature was never communicated to investors and that WLFI's governance votes were manipulated by the core team, undermining decentralization. Sun describes himself as the project's first and largest victim, calling the backdoor a "trap disguised as a door" and criticizing the unilateral control over user funds. The incident has led to a sharp decline in the WLFI token price and raised broader concerns about investor protections, transparency, and the risks of centralized control in decentralized finance projects. WLFI has yet to respond to these allegations.
