Compass Investments

– Tron founder Justin Sun openly announced his breakup with World Liberty Financial early Sunday, claiming the Trump-supervised project implemented a hidden blacklisting feature in WLFI’s smart contract, giving the team the ability to “freeze, restrict and effectively misappropriate” investors’ tokens.

Sun described himself as the first and largest victim of the feature, referring to his wallet, which has been blocked since September 2025.

WLFI’s official channel responded hours later, accusing Sun of “portraying a victim and making unsubstantiated claims to cover up his antics, and hinting at the possibility of a lawsuit, writing: “See you in court, buddy.

The altercation comes days after WLFI’s token price plummeted to its lowest level since it was revealed that the project had raised about $75 million in stablecoins through Dolomite using its own management token as collateral. {

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Justin Sun, once World Liberty Financial’s top outside sponsor, has now become its most prominent public critic. By Sunday afternoon, the project was facing a backlash.

In a post on Platform X published early Sunday morning, the head of Tron accused the DeFi project, which has ties to the Trump family, of embedding an undisclosed backdoor feature into the smart contract used for WLFI tokens. Sun claims that this feature gives the company the exclusive power to freeze, restrict and essentially revoke the ownership rights of any token holder without notice, without cause and without the ability to appeal.

Sun called the design the underside of what was being sold to investors, a trap disguised as an open door.

He identified himself as the first and biggest victim, pointing to a wallet that World Liberty blacklisted in September 2025 after he transferred about $9 million to WLFI between his addresses.

Any actions by the WLFI team to charge user fees, secretly impose backdoor control over user funds, freeze investor assets without disclosure or due process, and treat the crypto community like a personal ATM are all abusive and were never authorized by any honest, transparent, or good faith community governance process, wrote Sun.

This statement marks a dramatic escalation. In September, Sun denied his involvement and asked the team to unlock his tokens, calling the move “unreasonable, but at the time he refrained from allegations of fraud. In Sunday’s statement, the project is accused of covertly imposing controls, charging users and holding governance votes, “the results of which were predetermined.

At the end of 2024, he invested $30 million in the project and was appointed as an advisor, later increasing his stake to about $75 million and committing $100 million to the TRUMP memcoin.

His locked WLFI stock, which Bubblemaps estimates at about 545 million tokens, has lost more than $80 million in value since the lockup, with much of the decline coinciding with the overall negative trend of WLFI. A few hours later on Sunday, World Liberty gave a direct response on Platform X, writing:

“Does anyone else believe @justinsuntron?

Post accused Sun of “playing the victim by making baseless attacks to cover up his own misdeeds, called it “the same scheme but with a different target, and said the project has contracts, proof and truth.

WLFI is clearly preparing for a legal battle with its once-famous investor. “Whoever is behind this official account should come out and identify themselves.