The World Liberty Financial project—a cryptocurrency linked to former US President Donald Trump—is facing serious allegations of fraud. A key concern is that its main investment pool is nearly full (93% utilized) while offering limited ways for investors to withdraw their money, adding to the growing controversy.
Sun Claims His Wallet Was Frozen First
Justin Sun, the founder of Tron and a significant investor with over $100 million in the project, publicly accused WLFI on X (formerly Twitter) of secretly creating a vulnerability in its code. He claims this ‘backdoor’ allows the WLFI team to unexpectedly freeze or block users’ access to their funds.
I have always been an ardent supporter of President Trump and his crypto friendly policy.
I was one of the first investors in World Liberty Financial, and I put a significant amount of money in because I was impressed by their stated goal: to create a financial platform that wasn’t controlled by a single entity…
— H.E. Justin Sun (@justinsuntron) April 12, 2026
Sun explained he wasn’t simply an outside observer offering criticism. He stated his own cryptocurrency wallet was blocked in 2025, making him the initial and most affected user of the feature. He argued this went against the core principles of decentralized finance.
WLFI has not issued a formal public response to the allegations.
Borrowed Millions Against Its Own Tokens
A new claim of hidden control emerged at the same time as an existing issue was drawing more scrutiny. Blockchain analysis company Arkham Intelligence reported that WLFI put roughly 2 billion of its tokens into the Dolomite lending platform and used them as collateral to borrow over $31 million in stablecoins.
Currently, the project makes up about 55% of all the funds available on Dolomite, which is a high percentage that some experts are watching closely because it could create risks for the platform.
Looking back at the transaction history, I’ve noticed a pattern. Apparently, WLFI staked about $14 million of their own stablecoin, USD1, back in February and used it as collateral to borrow $11.4 million in USDC. It seems like they were leveraging their holdings.
An additional $12.5 million was sent directly to Coinbase Prime, avoiding the project’s lending process. Overall, data shows the project utilized roughly 5 billion of its own tokens to attract about $75 million in external funds – a method some have likened to a circular funding arrangement.
Token Price Slides As Pressure Mounts
The cryptocurrency market has been challenging recently. WLFI’s token price has fallen below $0.08, losing over 20% of its value in the last month. Additionally, it’s becoming harder for users to withdraw their funds because the lending pool is almost full.
As a crypto investor, I’ve been keeping a close eye on things, and it’s a bit concerning to see 3 billion WLFI tokens were transferred around during the first week of April. It definitely adds to the feeling that something’s up.
Sun concluded his speech by asking the team to release the tokens and be more open about their work. It’s currently unclear if they will follow his request or even acknowledge it.
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2026-04-13 05:12