BREAKING: Trump’s Own Crypto Venture Accused of Secret “Backdoor” to Freeze Investor Funds
The crypto project co-founded by Donald Trump is facing explosive accusations from one of its biggest early backers. Justin Sun, the blockchain entrepreneur who poured at least $75 million into World Liberty Financial’s WLFI token, publicly claimed Sunday that the company secretly built a tool giving it unilateral power to freeze and confiscate token holders’ assets without notice or recourse.
Sun, posting on X without providing supporting documentation, alleged that World Liberty embedded what he called a “backdoor blacklisting function” into the token’s underlying blockchain contracts, allowing the company to restrict any holder’s funds at will.
World Liberty fired back on X, writing that they have the contracts, the evidence, and the truth, and promised to see Sun in court.
Sun says he was the first and largest victim of the alleged tool, pointing to the freezing of his own holdings back in September. At the time, World Liberty said it had acted in response to what it described as malicious or high-risk activity. Sun followed up Monday claiming blockchain records showed a single account with special administrative powers had blacklisted his wallet, though he did not share those records publicly.
World Liberty Financial, the most prominent of several crypto ventures tied to the Trump family, pulled in over $460 million for the family during the first half of 2025 alone. The project was pitched at launch as a decentralized finance platform that would put financial power back in the hands of small investors. That app has never launched.
The SEC declined to comment on the legal questions surrounding token freezes. Crypto remains a regulatory gray area, with no overarching federal framework governing these kinds of actions.- Really American