Tron (CRYPTO: TRX) founder Justin Sun alleged on Sunday an ongoing “token scandal” at the Trump family-backed World Liberty Financial (WLFI) platform, which enables unilateral freezing of user assets.
Sun Alleges Major Misconduct At WLFI
Sun claimed on X that the company has embedded a “backdoor blacklisting function” in its smart contract.
“This function gives the Company unilateral power to freeze, restrict, and effectively confiscate the property rights of any token holder, without notice, without cause, and without recourse,” the cryptocurrency billionaire added.
As a major early investor whose wallet was blacklisted last year, Sun called himself the “first and single largest victim” of the scandal.
“These actions have nothing to do with me. They have nothing to do with the investors who believed the promises this project made. We oppose every one of these actions in the strongest possible terms,” Sun stated.
WLFI Warns Of Legal Action
The WLFI team clapped back, accusing Sun of making “baseless allegations” to mask his own wrongdoings.
“We have the contracts. We have the evidence. We have the truth. See you in court pal,” WLFI hinted at a legal action.
Sun demanded that the anonymous operators behind the official account come forward and identify themselves to ensure accountability.
The WLFI team didn’t immediately return Benzinga’s request for comment.
Has Justin Sun fallen out with the Trumps?
Sun is a leading investor and advisor at World Liberty Financial, holding roughly 545 million WLFI tokens, valued at $43 million, according to Arkham Intelligence. The Chinese-born entrepreneur was also among the high-profile guests at the gala dinner hosted by Trump for holders of his Official Trump (CRYPTO: TRUMP) memecoin.
However, things have taken a downturn lately. Last September, World Liberty Financial blacklisted his wallet following a transfer of WLFI worth more than $9 million to an unknown address.
Sun stated that the address carried out a “few general exchange deposit tests” with small amounts, with no buying or selling involved that could have impacted the market.
Price Action: At the time of writing, WLFI was exchanging hands at $0.07880, up 0.92% in the last 24 hours, according to data from Benzinga Pro. Year-to-date, the token has plunged 45% and more than 80% since its peak in September.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo Courtesy: T. Schneider on Shutterstock.com
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