The public spat between World Liberty Financial (WLFI) and Justin Sun now appears to be headed toward legal action. The two sides are exchanging accusations of misconduct in this dispute. In the new attack, WLFI accused Sun of “playing the victim” while making “baseless allegations” to cover up his actions.
“We have the contracts. We have the evidence. We have the truth. See you in court,” a Trump-linked company told The Sun. However, Tron’s founder responded to the allegations. Challenge the team to publicly identify themselves. He also accused them of secretly including “backdoor controls” in the protocol.
The back and forth movement showed little impact on the two related crypto projects. TRON (TRX) printed a green indicator while Bitcoin price fell by more than 3% in the last 24 hours. TRX is trading at an average price of $0.322 at press time. On the other hand, WLFI’s price fell by about 2% over the same period.
Can WLFI freeze funds?
Justin Sun, in X’s post, claimed that the system allows WLFI to do this Freezing investors’ funds “Without disclosure or due process.” He added that someone should be held personally accountable.
The dispute came to light when it was claimed that WLFI had introduced a blacklisting function into its token contracts. This happened after investors had already committed capital. Sun claims that no such mechanism was disclosed in advance.
Whoever is hiding behind this official account, come forward and introduce yourself. Every action taken by the WLFI team to secretly implant backdoor controls on user assets, freeze investor funds without disclosure or due process, and treat the cryptocurrency community as… https://t.co/NkxYv20eVj
– His Excellency Justin Sun 👨🚀 🌞 (@justinsuntron) April 12, 2026
According to reports, the original WLFI token contract launched in September 2024 did not include blacklisting or forfeiture features. The contract was later upgraded. The blacklist functionality was reportedly added in August 2025. This occurred approximately 11 months after Sun’s initial investment and just before trading began.
Another upgrade occurred in November that introduced a “batch reallocation” mechanism. WLFI has justified this as a means of recovering stolen or compromised funds.
Sun has invested about $75 million and was once the project’s largest outside backer. He claims that he became a direct target of these controls after his wallet was frozen. The founder of TRON described himself as the “first and biggest victim” of the system.
Sun reportedly transferred a portion of the WLFI tokens that were unlocked (about 55 million). This was done shortly after the first token was unlocked. These tokens were reportedly transferred to his HTX exchange.
Did WLFI freeze Sun’s wallet?
Project Allegedly While retail users were securing tokens, Sun may have been selling into the market through backend activity. WLFI claims it reported this behavior internally and froze his wallet. This was done on the basis of the contractual terms being violated. At the same time, these conditions remain unclear.
WLFI’s token distribution structure has also drawn attention. The data suggests that Sun has been placed in a separate entitlement category from other investors. While most of the participants were grouped together, he was reportedly assigned a unique category. He has 20% of his allowance opened upfront as a lump sum.
However, the remaining 80% appear to have no clearly defined vesting schedule months. Claimed balances still show zero.
Adding to concerns is that the portfolio freeze itself may not have required widespread consensus. Reports indicate that one guardian’s address was able to blacklist Sun’s wallet. Additional approvals are usually required for asset reservation functions.
WLFI’s treasury activity is being examined. The project reportedly uses billions of WLFI tokens as collateral on lending platforms. It allows borrowing large amounts of stablecoins and circulating liquidity through internal structures.
Wolfie price Continuously declining. It is down more than 53% in the last 90 days. WLFI is trading at an average price of $0.078 at press time. It is down 83% from its all-time high of $0.46. TRX is among the few cryptocurrencies that seem to have survived the crash. TRX price has risen more than 15% in the last 60 days.
