Justin Sun slams WLFI on talk locks, gets legal threats in response.
Justin Sun, founder of Tron's Layer-1 blockchain network, has criticized World Liberty Financial (WLFI), a decentralized financial platform co-founded by US President Donald Trump's sons, over the platform's management of tokens.
Sun said it had invested “substantial capital” in WMFI as an early investor and also said the March WMFI management proposal to determine token lock-up times lacked transparency, with more than 76% of the voting tokens coming from 10 wallets. In a Sunday post on X, Sun wrote (in translation):
“The administrative votes cited to justify the above actions were not conducted in a fair or transparent manner. Key information was withheld from voters, meaningful participation was limited, and the outcome was predetermined.”
In response, World Liberty Financial threatened to take legal action against The Sun, claiming that “Justin's favorite move is to play the victim and cover up his own wrongdoing with baseless allegations.”
The incident came as the community pressured WWFI and asserted that the platform was using its own governance tokens as collateral, pushing WLFI's price to an all-time low and prompting a renewed backlash against Trump on his crypto activities.
Cointelegraph reached out to World Liberty Financial but did not receive a response by the time of publication.
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As the community's backlog increases, the WLFI token drops to an all-time low.
The WLFI token hit a new all-time low on Saturday, with news of the platform falling to just $0.07 to borrow stablecoins using WMFI tokens as collateral.
Wallets linked to World Liberty Finance have used WLFI tokens as collateral on Dolomite, a DeFi platform to take out stablecoin loans, according to the project's chief technology officer, Corey Kaplan.
WFI confirmed that it acts as an “anchor” borrower, generating product for the platform and value for stakeholders, adding that it is “one of the largest suppliers and borrowers” in the WMFI ecosystem.
“Treating the crypto community as a private ATM is unfair and has never been allowed by any fair, transparent and good faith community governance process,” Sun said.
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