Justin Sun Accuses WLFI of Backdoor Control After Token Freeze

Market Justin Sun World Liberty Financial (WLFI)

Apr 13, 2026

< 1 min read

by Coin Edition

for CoinEdition

Justin Sun Accuses WLFI of Backdoor Control After Token Freeze

AI Overview

Justin Sun invested $75 million in World Liberty Financial (started $30M in late 2024, scaled to $75M by Jan 2025) and was named an advisor; he also committed $100M to a TRUMP memecoin (total Trump-linked exposure ≈ $175M). WLFI alleges Sun used retail investors' locked tokens as early exit liquidity on HTX; Sun's wallet was frozen and he accuses WLFI of a hidden freeze/backdoor function that trapped funds, triggering a token freeze. The dispute creates immediate security and governance risk for WLFI, threatens DeFi adoption and token launch confidence, and could affect fundraising and CEX/DEX trust.

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Sun invested $75 million in WLFI and was named advisor before his wallet was frozen.
WLFI alleges Sun used retail investors’ locked tokens as early exit liquidity on HTX.
Sun calls the hidden freeze function a trap masquerading as a door and demands accountability.

Justin Sun invested $75 million in World Liberty Financial, was named a project advisor, and publicly backed its vision of decentralized finance for everyday Americans. This week, he accused it of secretly building a backdoor to freeze investor funds and called it a trap.

Here is exactly how the situation developed.

The Investment

In late 2024, Sun put $30 million into WLFI. By January 2025, he had scaled to $75 million and became an advisor. He separately committed $100 million to the TRUMP memecoin, bringing his total Trump-linked crypto exposure to approximately $175 million.