Justin Sun Breaks Ties with Trump-Backed World Liberty Financial Over Liquidity Concerns

Justin Sun, the founder of Tron and a former major investor in World Liberty Financial (WLFI), has severed ties with the Trump-backed DeFi project, alleging that the team has treated the crypto community as a "personal ATM." The conflict erupted after WLFI deposited 5 billion tokens as collateral on the Dolomite lending platform to borrow approximately $75 million in stablecoins. This massive transaction dominated Dolomite's liquidity, at one point pushing the USD1 pool to 100% utilization and temporarily preventing ordinary stablecoin depositors from accessing their funds. Sun's criticism extends beyond the recent loan. He highlighted a 2025 incident where WLFI froze his wallet, locking him out of 595 million tokens valued at roughly $107 million at the time. While WLFI claimed the freeze was a security measure against phishing, Sun describes it as a violation of basic investor rights and blockchain principles of fairness. Furthermore, Sun challenged the project's governance, alleging that votes used to justify the freezes were neither fair nor transparent. Despite the attacks on the project's operators, Sun explicitly stated that his grievances are with the "bad actors" at WLFI and not with President Trump's broader crypto-friendly policies. The internal turmoil coincides with a decline in the project's valuation. WLFI is currently trading at $0.079, representing an 18% drop over the last week.