A major investor in U.S. President Donald Trump’s family’s World Liberty Financial cryptocurrency firm claims the company “secretly” implemented a tool to unilaterally freeze and limit private holdings of its WLFI token.
On Sunday local time, “TRON” founder Justin Sun posted on social media platform
Justin Sun wrote that this feature gives World Liberty the unilateral power to freeze, restrict and effectively confiscate the property rights of any token holder without prior notice, reason, or any recourse.
World Liberty's official account on the X platform responded to Sun's accusations on Sunday: "We have a contract. We have evidence. We have the truth. See you in court, man."
World Liberty is the most high-profile of several lucrative cryptocurrency companies co-founded by the Trump family. The cryptocurrency company announced in 2024 that it would give small investors control over the flow of funds through a "decentralized finance" (DFT) application, but the application has not yet been launched.
An analysis published last year showed that World Liberty generated more than $460 million in revenue for the Trump family in the first half of 2025.
Justin Sun became the largest public investor in the then fledgling World Liberty in late 2024, spending tens of millions of dollars to purchase WLFI tokens and was appointed as an advisor to the company. He later increased his holdings to at least $75 million worth of tokens, according to his January 2025 social media posts.
In 2024, Justin Sun said in an interview that his investment was a vote of confidence in the Trump family's "excellent projects."
In March this year, Justin Sun reached a settlement with the U.S. Securities and Exchange Commission (SEC), paying US$10 million to end a lawsuit filed in 2023. The lawsuit accuses Sun of fraud, including selling unregistered cryptocurrency securities and concealing promotional payments to celebrities. Sun has not admitted any wrongdoing.
World Liberty’s risk disclosure statement states that the company reserves the right to freeze wallet addresses and their associated tokens that it determines are associated with illegal activities or activities that violate its terms.
Other cryptocurrency companies, such as Tether, the world's largest stablecoin issuer, also have the power to freeze user tokens. According to Tether’s previous statements, the company typically takes freezing measures when it suspects illegal use or when requested by law enforcement.
In a post published on the X platform on Sunday, Sun claimed that World Liberty mistakenly blacklisted his WLFI token wallet in 2025, making him the “first and biggest victim” of this World Liberty tool. The tokens held by Justin Sun were frozen in September last year, and at the time, World Liberty said that they had no intention of blacklisting anyone and that they were only responding to "malicious or high-risk activities that may harm community members."
On Monday local time, Justin Sun cited some unspecified blockchain records on X, saying that these records showed that his digital wallet was "blacklisted" by an account with special administrative rights.
Justin Sun claimed that this proved that World Liberty "someone - just one person" has the power to freeze the assets of any token holder. "Who is this man?" he asked.