Skip to main content

Trump’s Crypto Venture Secretly Built A Way To Freeze Your Funds, Investor Claims

A pool with 93% utilization and shrinking exit options is one of the more uncomfortable details buried in the growing controversy around World Liberty Financial — the crypto project connected to US President Donald Trump that is now fighting accusations of deception from one of its own biggest backers.

Sun Claims His Wallet Was Frozen First

Tron founder Justin Sun, who poured more than $100 million into the project across two separate investments, went public on X with a pointed accusation: that WLFI quietly built a backdoor into its smart contract infrastructure — one that lets the team freeze, restrict, or block access to user funds without warning.

Sun said he was not just a critic watching from the outside. His own crypto wallet was blacklisted in 2025, he claimed, making him the project’s first and largest victim. He called the feature the opposite of what decentralized finance is supposed to stand for.

WLFI has not issued a formal public response to the allegations.

Borrowed Millions Against Its Own Tokens

The hidden control accusation arrived alongside a separate controversy that had already been gaining attention. According to blockchain analytics firm Arkham Intelligence, WLFI deposited close to 2 billion of its own tokens into the Dolomite lending protocol and borrowed more than $31 million in stablecoins against them.

The project now accounts for roughly 55% of Dolomite’s total liquidity — a concentration that has raised eyebrows among observers tracking the platform’s exposure.

Earlier transactions pointed in a similar direction. Reports indicate WLFI put up $14 million worth of its in-house stablecoin, USD1, to borrow $11.4 million USDC in February.

Another $12.5 million in USD1 was moved directly to Coinbase Prime, bypassing the lending system entirely. In total, on-chain data shows the project used approximately 5 billion of its self-issued tokens to pull in around $75 million in outside liquidity — a structure critics have compared to circular financing.

Token Price Slides As Pressure Mounts

The market has not been kind. WLFI’s token dropped below $0.08 and has shed more than 20% over the past 30 days. With the USD1 lending pool running at near-full capacity, users looking to withdraw face tightening conditions.

Reports also note that 3 billion WLFI tokens were moved during the first week of April, adding to the unease.

Sun ended his public statement with a demand: unlock the tokens, and operate with transparency. Whether the team acts on that — or responds at all — remains to be seen.

Featured image from David Hume Kennerly/Getty Images, chart from TradingView



from Bitcoinist.com https://ift.tt/QUC4qda
Labels:

Comments

Post a Comment

Popular posts from this blog

Bitcoin Goes Official: Texas Becomes 1st US State With BTC Reserve

Everything is big in Texas, many would say. Today, the state is looking past its current state of finances by adding Bitcoin to its coffers–and making things bigger in terms of its economic implications. Texas became the first US state to establish a crypto reserve . On March 7, 2025, legislators passed Senate Bill 21, which gives the green light to the state to direct public funds toward Bitcoin and other digital assets. The action has elicited both support and concern, with some viewing it as a prudent financial hedge and others warning of potential pitfalls. A Push For Bitcoin In The Lone Star State For months, Texas has been seeing increasing favor for the idea of a Bitcoin reserve. Senator Charles Schwertner introduced SB 778, a measure that proposes establishing a strategic stockpile. Including the top crypto asset into the state’s financial reserves was meant to help cushion inflation and economic uncertainty. Texas officials, especially Lieutenant Governor Dan Patrick, wh...
Post a Comment
Read more

Liczba milionerów kryptowalutowych wzrosła o 40%. Rynek przekracza 3,3 biliona dolarów

Rozwój rynku kryptowalut widać również bo liczbie osób, których portfel kryptowalutowy przekroczył milion dolarów. Według najnowszego raportu Henley & Partners, liczba inwestorów posiadających majątek przekraczający milion dolarów w cyfrowych aktywach wzrosła o 40% w ciągu ostatniego roku. Aktualnie na świecie jest już 241 700 milionerów, jeśli chodzi o waluty cyfrowe. Wzrost ten zbiegł się z historycznym momentem, gdyż w połowie 2025 roku kapitalizacja całego rynku kryptowalut przekroczyła 3,3 biliona dolarów . Bitcoin wciąż liderem wzrostów Największy udział w tworzeniu nowych fortun ma niezmiennie Bitcoin. Liczba posiadaczy portfeli BTC, których wartość przekracza milion dolarów, wzrosła aż o 70% rok do roku i wynosi dziś 145 100 . Jeszcze bardziej imponująco wygląda grupa tzw. Centymilionerów, czyli inwestorów posiadających ponad 100 milionów dolarów w Bitcoinie. Ich liczba wzrosła o 63% , osiągając poziom 254 osób. Co więcej, liczba miliarderów BTC podskoczyła do 17, notu...
Post a Comment
Read more

Slow And Steady Wins? Bitcoin To Hit $1M Via ‘Pump’ And ‘Consolidate’ Pattern: Expert

The bull cycle was deemed over when the price of Bitcoin tragically fell toward $75,000 earlier in March 2025. Having notched an all-time high of above $100,000, most investors feared that the premier cryptocurrency had already reached its top for the current cycle. Contrary to popular belief, the price of Bitcoin has since forged multiple new all-time highs, with the current record high at around $122,800. Interestingly, the now-popular market consensus is that it is only a matter of time before the BTC price reaches a seven-figure valuation. How Will Bitcoin Hit $1 Million In 10 Years? In a recent post on the X platform, Blockware Bitcoin analyst Mitchell Askew has joined a growing list of experts to put forward a $1 million projection for the premier cryptocurrency. According to the analyst, the price of BTC is expected to achieve this major milestone over the next 10 years. What’s interesting is that Askew expects the Bitcoin price to reach a $1 million valuation in the next ...
Post a Comment
Read more