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Asset Freeze · Crypto · Justin Sun · World Liberty
Justin Sun, a significant investor in Donald Trump’s World Liberty Financial crypto venture, publicly accused the firm of secretly implementing a "backdoor blacklisting function" to unilaterally freeze and confiscate private holdings of its WLFI token, prompting World Liberty to deny the claims and threaten legal action.
Sun, who invested at least $75 million in WLFI tokens and served as an advisor, stated on X that this tool grants World Liberty "unilateral power" over token holders' property rights without cause or recourse. World Liberty responded on X, asserting they possess contracts, evidence, and truth, declaring, "See you in court pal." Reuters could not independently verify Sun's allegations or World Liberty's use of such a tool.
The Trump family's World Liberty generated over $460 million in income during the first half of 2025, according to a Reuters analysis. Sun claims he was the "first and single largest victim" when his holdings were frozen in September, an action World Liberty attributed to "malicious or high-risk activity." The company's risk disclosures confirm its ability to block and freeze wallet addresses associated with illegality or terms violations, a practice also employed by other crypto firms like Tether, typically for illegal usage or law enforcement requests.
The Securities and Exchange Commission (SEC) declined to comment on US rules regarding such freezes, highlighting the regulatory grey area for crypto in the United States.
