World Liberty Financial publicly threatened to sue Justin Sun. The Tron founder has invested at least $75 million in the project’s WLFI token and about $18 million in the president’s TRUMP memecoin, which launched in January 2025. Sun has accused the project of manipulating user funds. The WLFI token plunged 13% on Friday to about $0.079, an all-time low, after reports that the company used five billion tokens as collateral to borrow $75 million in stablecoins, including its own USD1, through the DeFi protocol Dolomite.
The outburst comes after World Liberty Financial froze one of Sun’s wallets in September after the crypto mogul moved WLFI to the HTX crypto exchange, which he owns. Sun fired off a barrage of tweets accusing World Liberty Financial of implanting backdoor controls over user assets, freezing investor funds without disclosure or due process, and treating the crypto community like a “personal ATM.” As the largest investor in this project, he demanded that those responsible come forward by name, instead of hiding in the shadows. Sun urged WLFI to publicly disclose who controls the single guardian external owned account and the 3-of-5 multisig that governs the WLFI smart contract.
A multisig is a type of crypto wallet that requires several private keys to authorise transactions. “Whoever sits on those accounts has the unilateral power to freeze any token holder’s assets,” Sun wrote. “Let me be clear about what this structure means: community governance and voting are meaningless,” Sun said. “Every proposal, every vote, every claim of decentralised decision-making is theatre. Real power — the power to freeze, to move funds, to control the protocol — sits with one anonymous EOA and a 3-of-5 multisig that answers to no one.”
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