Dispute

Justin Sun Accuses World Liberty Financial of Hidden Smart Contract Backdoor

co-written by newsrooms.ai13. April 2026, 11:13

A publicly waged conflict between Tron founder Justin Sun and the crypto platform World Liberty Financial (WLFI) is currently causing a stir in the crypto industry. At the center of it all are frozen accounts, mutual accusations, and the question of how decentralized so-called DeFi platforms actually are. Both sides have since spoken out publicly, and a legal dispute is likely to follow.

Sun’s Allegations: Backdoor in the Smart Contract

Justin Sun, known as the founder of the Tron network and a former investor in WLFI, reports that he no longer has access to his accounts on the platform. He describes the action as unjustified and levels serious accusations against the operators.

“What was never disclosed to me or any other investor is that World Liberty built a backdoor locking function into the smart contract used to issue WLFI tokens. This is the opposite of decentralization. This is a trapdoor being marketed as an open door,” according to Justin Sun’s accusation.

Sun explains that he invested in WLFI because he believed in the publicly communicated vision of a decentralized financial platform. In his view, the locking function now uncovered stands in direct contradiction to that promise. He accuses WLFI of having kept investors in the dark about the platform’s actual structure.

WLFI’s Response: Rebuttal and Announcement of Legal Action

World Liberty Financial firmly rejects the allegations. In a statement on the platform X, those responsible call Sun’s account into question and suggest they have evidence of their own.

“Does anyone still believe Justin Sun? His favorite move is to play the victim while making baseless accusations to cover up his own misconduct. Same tactic, different target. WLFI is not the first. We have the contracts. We have the evidence. We know the truth. See you in court.”

WLFI accuses Sun of deliberately constructing the image of a victim in order to deflect from his own misconduct. Concrete evidence for this claim has not yet been made public.

The WLFI token has dropped by approximately 75 percent in price since its launch in 2025. In addition to WLFI, the company, which is closely connected to the Trump family, issues the stablecoin USD1. The TRUMP token, however, is issued by a different company within the US president’s network.