The pool, which has a 93% usage rate and reduced exit options, is one of the most uncomfortable details buried in the growing controversy over it. Global financial freedom – A cryptocurrency project linked to US President Donald Trump that is now fighting Accusations From deception from one of its biggest supporters.
Sun claims that his wallet was frozen first
Justin Sun, founder of Tron, who has pumped more than $100 million into the project via two separate investments, announced X with a pointed accusation: that WLFI The company has quietly built a backdoor into its smart contract infrastructure — one that allows the team to freeze, restrict or block access to users’ funds without warning.
I have always been an ardent supporter of President Trump and his crypto-friendly policies.
As one of the first backers to invest heavily in World Liberty Financial, I did so because I believed in the vision that was presented to the public: a decentralized finance platform…
– His Excellency Justin Sun 👨🚀 🌞 (@justinsuntron) April 12, 2026
Sun said he was not just a critic watching from the outside. He claimed that his own crypto wallet was blacklisted in 2025, making him the project’s first and biggest victim. He described this feature as the opposite of what decentralized finance is supposed to represent.
WLFI has not issued a formal public response to these allegations.
It borrowed millions against its tokens
The accusation of hidden control arrived alongside a separate controversy that had already received attention. According to the blockchain analytics company Arkham IntelligenceWLFI deposited nearly 2 billion of its tokens into the Dolomite Lending Protocol and borrowed more than $31 million in stablecoins against it.
The project now represents nearly 55% of Dolomite’s total liquidity — a concentration that has raised eyebrows among observers tracking the platform’s exposure.
Previous transactions pointed in a similar direction. WLFI reportedly set aside $14 million worth of its internal stablecoin, USD1, to borrow $11.4 million from USDC in February.
BTCUSD trading at $71,125 today. Chart: TradingView
Another $12.5 million USD was transferred directly to Coinbase Prime, bypassing the lending system entirely. In total, on-chain data shows that the project used nearly 5 billion of its self-issued tokens to withdraw about $75 million from abroad. Liquidity – A structure that critics have compared to circular finance.
The price of the token slides as pressure mounts
The market wasn’t kind. WLFI token has fallen below $0.08 and lost more than 20% over the past 30 days. With the $1 lending pool running at almost full capacity, users looking to withdraw face tightening conditions.
Reports also indicate that 3 billion WLFI tokens were transferred during the first week of April, adding to the concern.
Sun ended his public statement with a demand: open tokens and operate transparently. It remains to be seen whether the team will act on this – or respond at all.
Featured image by David Hume Kennerly/Getty Images, chart from TradingView
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