‘Backdoor blacklisting function’ – TRON’s Justin Sun escalates WLFI feud

Amidst the ongoing FUD surrounding the U.S President Donald Trump-backed crypto project, a new feud is escalating online. On the 12th of April, TRON Founder Justin Sun took to X and slammed Trump’s World Liberty Financial (WLFI), noting, 

Explaining his stance, Sun noted how the aforementioned function provided the company with solitary power to “freeze, restrict, and effectively confiscate the property rights of any token holder, without notice, without cause, and without recourse.”

What’s behind this fueled frustration?

Needless to say, this kind of frustration comes on the back of Sun being a strong advocate and a heavy investor in WLFI. The thing about WLFI that had attracted him the most was, 

On top of that, he was also one of the biggest supporters of “President Trump and his crypto-friendly policy.”

Therefore, expressing further frustration on the matter, Sun noted, 

Trump’s WLFI fires back at Justin Sun’s allegations

Despite being the largest holder since 2025, Sun’s remarks were immediately countered by the WLFI team when they argued, 

The team stood firm against Sun’s allegations and was even prepared to present the contract and evidence to prove the truth. 

Further in its defense, Trump’s crypto project even went ahead and gave a legal threat to Sun and said, 

As expected, TRON’s founder didn’t keep calm and attacked back by saying, 

The result?

Needless to say, all this feud resulted in increased social activity on $WLFI, as reported by LunarCrush.

What is the background?

The reason behind this surge in mentions was not just the ongoing feud, but WLFI’s recent deposit of $5 billion WLFI tokens (worth $429 mln) as collateral on Dolomite. Additionally, the project had also borrowed $75 million in USDC, resulting in its lending rates surging to a lucrative 13.5%.

In turn, this resulted in the liquidity pool getting drained, causing ordinary depositors to be unable to withdraw their stablecoins.

However, soon after this, WLFI announced that they had repaid $25 million in USD1. 

Interestingly, amidst all these efforts, the WLFI token was showing some signs of improvement as it traded at $0.07997 at press time after a hike of 1% in the past 24 hours.

However, its weekly decline of over 18% and monthly decline of over 22% still spark apprehension, as confirmed by the RSI and MACD indicators. 

Final Summary

• Justin Sun slams Trump’s WLFI, raising further FUD in the market, but WLFI shuts down Sun with legal threats.
• WLFI’s token price shows modest signs of improvement, but still bearish sentiment remains intact.