Justin Sun Claims $60M Loss in WLFI Dispute as Project Alleges Victim Playing

A public dispute has escalated between Tron founder Justin Sun and World Liberty Financial (WLFI), the cryptocurrency project linked to Donald Trump and his family. The conflict has moved toward potential legal action following accusations of asset freezing and investor deception.

World Liberty Financial has responded harshly to accusations made by Sun, describing his claims as baseless and stating that the company intends to take the matter to court. In a formal statement, the company alleged that Sun has a history of making false accusations by playing the victim.

We have the contracts, we have the evidence, the truth is on our side. We’ll see you in court.

World Liberty Financial

Allegations of Asset Freezing

The tension began with statements from Sun, who claimed that the WLFI token contract includes a backdoor blacklist mechanism designed to freeze investor assets. Sun alleged that his own wallet was blacklisted using this mechanism in 2025 and claimed a loss of $60 million.

Blockchain data from September 2025 supports the fact that a blacklisting occurred. On September 4, 2025, World Liberty Financial blacklisted a blockchain address linked to Sun that held 595 million unlocked WLFI tokens, valued at approximately $107 million at the time. This action impeded Sun from transferring those specific tokens.

According to reports, the blacklisting followed several outbound transactions from Sun’s address, including one transaction worth $9 million. Sun defended these moves in a post on X, stating the address had only conducted a few generic exchange deposit tests, with very low amounts and that the actions did not involve buying or selling and could not have impacted the market.

Investment and Market Impact

Justin Sun is one of the largest individual investors in the WLFI project, having injected approximately $75 million into the venture. He reportedly holds around $700 million worth of WLFI tokens, though the majority of these are vested.

The dispute has coincided with significant volatility for the WLFI token. Following its trading debut on September 1, 2025, the token price fell 42% by September 4, 2025, with a 20% drop occurring within a single 24-hour window.

Further controversy emerged regarding the transfer of approximately 60 million WLFI tokens, worth about $12 million, from an HTX hot wallet to a Binance investment address. Reports indicate the token price dropped between 16% and 24% on the same day as this transfer, although World Liberty Financial maintains that the price decline began before the transfer took place. Sun has denied allegations that he sold tokens.

Corporate Response

World Liberty Financial has maintained that Sun’s public narrative is a cover for his own misconduct. The company’s representatives have characterized his behavior as an attempt to play the victim to deflect from the circumstances leading to the blacklisting of his address.

The clash intensifies scrutiny regarding the governance of the Trump-linked protocol and the role of its key investors during the project’s launch phase.