HUNT VALLEY, Md. (TNND) — Cryptocurrency investor Justin Sun, who has pumped tens of millions of dollars into World Liberty Financial, claimed Sunday that the company has a back door to seize traders’ tokens.
Sun said in a social media post that the firm included a program in its smart contracts, which automate blockchain transactions, to confiscate assets. The company has rejected his accusation, however.
“As an early supporter who invested heavily in World Liberty Financial, I did so because I believed in the vision that was presented to the public: a decentralized finance platform that would promote financial freedom, remove intermediaries, and bring the benefits of DeFi to mainstream Americans,” Sun wrote on X. “What was never disclosed — to me or to any investor — is that World Liberty embedded a backdoor blacklisting function in the smart contract used to deploy WLFI tokens.”
The firm, Sun explained, can freeze, restrict and effectively seize the “property rights” of any investor. The businessman said he was the first and is still the largest trader whose assets have been taken.
“I denounce the ongoing token scandals by the bad actors at WLFI,” Sun wrote. “I am the first and single largest victim, as a result of their wrongful blacklisting of my WLFI token wallet back in 2025, that violates basic investor rights and blockchain principles of fairness.”
World Liberty Financial dismissed Sun’s claims in its own post.
“Does anyone still believe @justinsuntron? Justin’s favorite move is playing the victim while making baseless allegations to cover up his own misconduct,” the firm said.
Sun announced in September that his tokens were “unreasonably” frozen. He asked World Liberty Financial to release them to “move forward together.”
“I believe that a truly great financial brand must be built on fairness, transparency, and trust – not on unilateral actions that freeze investor assets. Such measures not only violate the legitimate rights of investors, but also risk damaging broader confidence in World Liberty Financials,” Sun wrote on X.
The company pushed back on his allegations, asserting in a series of posts that it only “intervenes” to “protect” users.
“We do not seek to blacklist anyone. We respond when alerted to malicious or high-risk activity that could harm community members,” the firm said. “User safety {>} everything.”
Sun began investing in World Liberty Financial in late 2024 with a $30 million infusion. He said he was committed to leading “innovation” and “making America great again.”
Do you have questions, concerns or tips? Send them to Ray at rjlewis@sbgtv.com.