Concerns Raised Over Trump’s Cryptocurrency Venture
LONDON, April 13 – A leading investor in Donald Trump’s cryptocurrency project, World Liberty Financial, has accused the company of secretly implementing measures that allow it to freeze and limit private holdings of WLFI tokens.
In a post on the social media platform X, crypto entrepreneur Justin Sun alleged that World Liberty has included what he described as a “backdoor blacklist feature” within the blockchain contract governing the token, though he did not provide any proof for this claim.
Sun stated that this feature grants World Liberty “unilateral authority” to freeze or restrict token holders’ rights without cause or any means of recourse.
Reuters has not been able to verify whether World Liberty employs such capabilities, nor could it confirm specifics regarding Sun’s trading actions.
On Sunday, World Liberty’s official account on X responded to Sun’s accusations, asserting, “We have the contract. We have the evidence. We have the truth. See you in court.”
When approached for a comment, a spokesperson for World Liberty referred Reuters back to this social media post. Sun, however, did not respond to a message sent via Telegram, nor did his representative provide any comments when contacted by Reuters.
World Liberty stands out as one of several profitable crypto ventures founded by the Trump family. Upon its establishment in 2024, the company claimed it would empower smaller investors through a “decentralized finance” application, which has yet to be released.
According to a Reuters investigation published last year, the Trump family reportedly generated over $460 million in income during the first half of 2025.
Sun emerged as the largest publicly known investor in World Liberty shortly after its launch in late 2024, investing tens of millions in WLFI tokens and taking on an advisory role. His investment reportedly reached at least $75 million, as noted in his social media updates from January 2025.
In 2024, Sun expressed to a New York Times reporter that his investment reflected his confidence in what he termed the Trump family’s “good project.”
In March, the Securities and Exchange Commission reached a settlement with Sun over a lawsuit from 2023 for $10 million, which accused him of fraud in selling unregistered virtual currency securities and hiding payments made to celebrities for promotions. Sun has denied any wrongdoing.
World Liberty’s risk disclosure indicates that the company reserves the right to block and freeze wallet addresses and associated tokens it associates with illegal activities or violations of its terms.
Other cryptocurrency firms, like Tether—recognized as the largest stablecoin issuer—also have the capability to freeze users’ tokens, typically in response to suspected illegal activities or law enforcement requests.
The SEC has refrained from commenting on U.S. regulations concerning such freezes, as the cryptocurrency landscape remains a regulatory gray area in the United States without comprehensive oversight from the Commission.
Sun also claimed on X that he might be the “first and biggest victim” of the alleged World Liberty mechanism, referencing the freezing of his token holdings. Initially, World Liberty stated it was not intending to blacklist anyone but would act against “malicious or high-risk activity” that could be detrimental to its community members.
On Monday, Sun mentioned unspecified blockchain records indicating that his digital wallet had been “blacklisted” by an account possessing special administrative privileges.
This led him to argue that an individual at World Liberty could arbitrarily freeze token holders’ assets. “Who is that person?” he questioned in his post.
Reuters has not been able to examine the records Sun referred to, and he did not make them available for review.
