- Tron founder Justin Solar has accused the Trump family-backed DeFi challenge, World Liberty Monetary of partaking in a large-scale fraud in opposition to buyers.
- Posting on X, Solar claimed the challenge has a secret “backdoor blacklisting operate,” permitting it to successfully steal investor property.
- WLFI hit again claiming the accusations are baseless and suggesting it can start authorized motion in opposition to Solar.
Tron founder, Justin Sun, has made a collection of significant allegations in opposition to the Trump family-backed decentralised finance (DeFi) challenge, World Liberty Financial (WLFI), accusing it of partaking in a large-scale premeditated fraud in opposition to buyers.
Posting on X on Sunday, Solar alleged the Trump household challenge had secretly constructed a “backdoor blacklisting operate” into the sensible contract used to handle WLFI tokens. In keeping with Solar, this secret operate provides the challenge “unilateral energy” to withhold token holders’ property.
This operate provides the Firm unilateral energy to freeze, limit, and successfully confiscate the property rights of any token holder, with out discover, with out trigger, and with out recourse.
Solar claimed that he was personally the “first and largest” sufferer of WLFI’s rip-off, referring to the September 2025 freezing of his account after he tried to maneuver roughly US$9 million (AU$12.7m) value of tokens between two addresses. It’s estimated that Solar’s frozen account holds roughly 545 million WLFI, which declined in worth by round US$80 million (AU$114m) since his account was frozen.
Solar stated that just about all the things the challenge had performed since its inception had been a part of the rip-off, claiming the challenge supposed from the very begin to defraud buyers as a way to enrich the Trump household and different assorted hangers-on.
“Each motion taken by the WLFI crew to extract charges from customers, to secretly implant backdoor controls over person property, to freeze investor funds with out disclosure or due course of, and to deal with the crypto group as a private ATM — all of those actions are illegitimate and had been by no means approved by any truthful, clear, or good-faith group governance course of,” Solar wrote.
I denounce the continued token scandals by the unhealthy actors at WLFI.
Justin Solar Some although, are skeptical of Solar’s sudden change of coronary heart on WLFI, suggesting the Tron founder knew the challenge was a rip-off however selected to take a position US$75 million (AU$107m) anyway in an try to safe extra lenient remedy in his authorized combat with the Securities and Trade Fee (SEC).
Based mostly on the end result of that case, by which Solar had been accused of market manipulation, fraud and wash buying and selling, it might seem his funding labored. In a settlement filed March 5, 2026, in a Manhattan federal court docket, all the costs in opposition to Solar had been dismissed, with simply one among his corporations — Rainberry Inc. — being required to pay a modest US$10 million (AU$14m) civil penalty.
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WLFI Responds to Solar’s Accusations
Unsurprisingly, WLFI was fast to respond on X, slinging abuse and accusations at Solar, in what was a disagreement between two of the heavyweights of the crypto scamming world.
WLFI’s official account accused the Tron founding father of “enjoying the sufferer whereas making baseless allegations to cowl up his personal misconduct.” And in an obvious reference to Solar’s earlier authorized dramas, it stated Solar was utilizing the “similar playbook, totally different goal.”
The WLFI account additionally boldly claimed, “We now have the contracts. We now have the proof. We now have the reality.” In typical Trumpian vogue, the account hit Solar with authorized threats, declaring, “see you in court docket pal.”
In response, Solar demanded whoever was writing the posts on the official WLFI account determine themselves: “Whoever is hiding behind this official account, step ahead and determine your self…As the most important investor on this challenge, I demand that these accountable come ahead by title, as a substitute of hiding within the shadows.”
Solar’s accusations come throughout a troublesome time for WLFI after it was revealed final week that the challenge lent 5 billion WLFI tokens to the lending protocol Dolomite in return for round US$75 million (AU$107m) value of the stablecoins USD1 and USDC. Dolomite was co-founded by Corey Caplan, WLFI’s Chief Technical Officer.
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Of the US$75 million in borrowed stablecoins, round US$40 million (AU$57m) have since been despatched to Coinbase Prime. This transaction is seen by many as a method WLFI can revenue from their tokens with out technically promoting them. It additionally sparked fears we might quickly see USD1 — WLFI’s stablecoin — de-peg from the US greenback, much like what we noticed occur with TerraLuna in 2022.
According to CoinGecko, WLFI’s token value has fallen over 53% previously three months as sentiment in opposition to US President Donald Trump and issues across the challenge have hardened. On the time of writing, the token was altering arms at US$0.079 (AU$0.11), down from just below US$0.17 (AU$0.24) three months in the past.
The publish Justin Sun Accuses Trump Project of Secret Token Freeze, Faces Lawsuit Threat appeared first on Crypto News Australia.