Justin Sun Criticizes WLFI Token Lockups as Platform Threatens Legal Action

Tron founder Justin Sun has publicly criticized World Liberty Financial (WLFI), a decentralized finance platform co-founded by the sons of US President Donald Trump, over its long token lock-up periods and governance structure. Sun said he invested “significant capital” as an early supporter but raised concerns about a March governance proposal that determined WLFI token lockups, claiming that more than 76% of voting power came from just 10 wallets, limiting fair participation.

Sun also alleged that WLFI governance lacked transparency, stating that key information was withheld, participation was restricted, and outcomes appeared predetermined. He further accused the platform of embedding blacklist functions at the smart contract level, raising additional concerns about decentralization and control.

WLFI Rejects Claims and Threatens Legal Action

WLFI strongly rejected Sun’s accusations, calling them misleading and stating that he was “playing the victim” while making baseless claims. The platform also threatened legal action in response to his statements. WLFI did not immediately provide further comment when contacted.

The dispute comes amid growing community backlash over WLFI’s token structure and governance decisions. The WLFI token recently fell to an all-time low of $0.07, following reports that WLFI-linked wallets used the token as collateral on the Dolomite DeFi protocol to borrow stablecoins.

WLFI confirmed it operates as an “anchor” borrower within its ecosystem, stating that the mechanism is intended to generate yield and support token value. However, critics, including Sun, argued that using governance tokens as collateral raises concerns about fairness and control, with Sun stating that treating the crypto community as a “personal ATM” is unacceptable without transparent governance processes.

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