WLFI versus Justin Sun

[Oshosondy]

Let us see what will happen in court. You would have read this topic: https://bitcointalk.org/index.php?topic=5580098.0

There has been at least 3 people that we know that WFLI froozed their coins and Justice Sun was one of them.

See what is happening now.

This is what we are talking about altcoins. His coins is freezed since manyonthe ago but he now cared. If the assets of WLFI worthless tokens of whales have not been frozen, the price of the token would have hit far lower price already.

The freezing still means that the token is very worthless.

Sun urged the Trump-linked WLFi platform to disclose who controls the multi-sig and smart contract behind the platform, days after its governance token hit a new low.

What is now creating the fear is:

Sun’s latest allegations come as WLFI is already under pressure after project-linked wallets deployed substantial token holdings as collateral on Dolomite, a decentralized lending platform linked to WLFI chief technology officer Corey Caplan.

Onchain data flagged by Arkham showed WLFI-linked wallets deposited about 5 billion WLFI tokens on Dolomite, borrowed about $75 million in USD1 and USDC
USDC
$1
, and transferred more than $40 million to Coinbase Prime.

Multiple DeFi analysts said the loan raises concerns for lenders on Dolomite if WLFI’s price falls near liquidation levels. WLFI acknowledged the lending position and assured investors that the WLFI token trades well above the liquidation threshold.

I think they fear the token price will drop and if the token price continue to drop, there will be abrupt liquidations of the peoples WLFI tokens and people will continue to sell which is not new to altcoins, but WLFI freezed their coins.

[OmegaStarScream]

I can only imagine what would've happened to WLFI's price if more tokens were unlocked, because right now, those who participated in the sale, don't have full access to everything they initially bought.

I also don't understand why would've anyone invested in WLFI? I saw it when it was first announced, the sales page and everything... And it just didn't sit right with me. I mean aside from it being backed by the president? what's so special about it?

[BattleDog]

A lot of people do not buy these things because they are technically impressive. They buy because they think proximity to powerful names will protect them from normal market gravity. Then gravity clocks in anyway.

I have seen this movie across multiple cycles and the ending is always the same: the small guys get told to be patient while the people near the switchboard somehow always have options. Once a token needs frozen balances, controlled unlocks, and PR gymnastics just to maintain the illusion of health, the chart is already telling you the truth.

[passwordnow]

I also don't understand why would've anyone invested in WLFI?

I think it's just because they've read that it's with Trump or he's a part of it or whatsoever. People nowadays invests on the popularity of whoever endorses it or the names that they're dropping for them to gain attention of the investors. I'm glad that I didn't invest onto this project because I'm now in losses when I've invested into the meme coin of Trump's wife, lol.

[o48o]

-cut-
See what is happening now.
-cut-

I am assuming that Justin didn't bother to read the whitepaper. Because it had huge scam written all over it, that he apparently just found out. Imagine being so rich that you can just buy major share from any crap and then whine about it being centralized scam. He could have avoided it just by reading it once and comprehending what he reads.

Even i read it, although i wasn't going to buy any and sure as hell wouldn't buy after reading it. This is a perfect example of

"I never thought leopards would eat my face," sobs woman who voted for the Leopards Eating People's Faces Party.

I am just eating popcorn and hope they sue each other to oblivion.

[asriloni]

I also don't understand why would've anyone invested in WLFI? I saw it when it was first announced, the sales page and everything... And it just didn't sit right with me. I mean aside from it being backed by the president? what's so special about it?

It's caused by at that time, WLFI was a token that has potential to flip our money. It's a common thing when people would put the details project aside. They care more to the how much potential ROI they would make it from put their money on WLFI.

It's also one of problems owned by crypto users when majority of them have degenerated mentality. They wanna made money as fast as possible without cared much about what risks they would face it.

Imagine, it's easy to flip money by invested in a token that being promoted by the president of super power country.

[FinneysTrueVision]

I think they fear the token price will drop and if the token price continue to drop, there will be abrupt liquidations of the peoples WLFI tokens and people will continue to sell which is not new to altcoins, but WLFI freezed their coins.

The fear is that this might be a roundabout way of dumping their tokens by the World Liberty Finance team. If they sold that many coins now, it would have a big price impact. Instead they are borrowing against their tokens, but they could decide not to pay back the loan and potentially leave lenders of USDC with bad debt. As things stand right now, there is 91% USDC utilization on Dolomite, so this is already causing some problems because there is not a lot of withdrawable liquidity for lenders that want to remove their supplied assets.

[Minor Miner]

For those interested in the scandal involving WLFI.
I do not know how accurate this information is, but someone claiming to be a WLFI Ambassador has revealed details about how the project works and the shady side behind it.

According to him, besides Justin Sun, many other prominent figures in the industry, such as CZ and BitMEX founder Arthur Hayes, also participated in and supported Trump's scam project.

If what this person says is true, then WLFI was a meticulously planned scam orchestrated by the Trump family.

Because its quite long, you can read full detail here.
https://x.com/gothburz/status/2043043381559837153

[asriloni]

For those interested in the scandal involving WLFI.
I do not know how accurate this information is, but someone claiming to be a WLFI Ambassador has revealed details about how the project works and the shady side behind it.

According to him, besides Justin Sun, many other prominent figures in the industry, such as CZ and BitMEX founder Arthur Hayes, also participated in and supported Trump's scam project.

If what this person says is true, then WLFI was a meticulously planned scam orchestrated by the Trump family.

Because its quite long, you can read full detail here.
https://x.com/gothburz/status/2043043381559837153

As for CZ's case. It's all make sense. Just after he was getting Trump's pardon. Binance launched a very big WLFI campaign on its exchange site for WLFI product holders. I can only guess it's still having correlation with CZ's pardon.

It seems these all already well planned. As you know, there's no free lunch these days.

[TastyChillySauce00]

Justin Sun's WLFI was frozen after there is shady transfer to HTX which Justin Sun claimed to be only for testing transfer purpose. But the fact that a token can be frozen is questionable, but i'm sure it's all already written on the term and conditions. Unfortunately people don't read these that much.
What even more crazy is the most recent alignment proposal for token unlock that is submitted to their governance. If I were WLFI buyer, with 2 year cliff and vesting I'd consider my money gone . We all know what happened to coin that did such thing, 90% dump after a year or two.

[Abiky]

I can only imagine what would've happened to WLFI's price if more tokens were unlocked, because right now, those who participated in the sale, don't have full access to everything they initially bought.

I also don't understand why would've anyone invested in WLFI? I saw it when it was first announced, the sales page and everything... And it just didn't sit right with me. I mean aside from it being backed by the president? what's so special about it?

If more tokens were unlocked, WLFI's price would crash dearly. I mean, there are a lot of whales holding this "shitcoin". Freezing someone else's funds, tells us how utterly-centralized it already is. Even Justin Sun is feeling the pain.

Once Donald Trump's term ends in Jan 2029, WLFI might see its demise. It has nothing special compared with other cryptocurrencies on the market. It's all based on speculation, rather than utility. Until frozen tokens are unlocked, I would steer clear from WLFI. We'll see if Justin Sun wins in the long run...

[OmegaStarScream]

Once Donald Trump's term ends in Jan 2029, WLFI might see its demise.
-snip-

I would not be surprised. Look at this:

https://www.reuters.com/legal/government/trump-backed-world-liberty-financials-early-investors-wont-be-able-fully-cash-2026-04-15/

They apparently have a new proposal (people will have to vote) to make sure the remaining of the funds are only unlocked after Trump's term finishes. Token would probably be dead by then.

[dansus021]

This case gonna big, since both Trump and Justin Sun are billionaires but hey Trump is the president pretty much he gonna win and I do believe there somene in the polymarket already created bet for this haha.

But to be honest Justin Sun was right if everything can be freeze and without community voting, contradict the principles of decentralization I mean this is basically like Tether and Circle in my opinion decentralization with centralization access

I can only imagine what would've happened to WLFI's price if more tokens were unlocked, because right now, those who participated in the sale, don't have full access to everything they initially bought.

is this for real that people who participate in sale didnt get their token just yet?

[OmegaStarScream]

is this for real that people who participate in sale didnt get their token just yet?

They did get some of it some time after the sale. I believe it was 20%. But the rest is still locked yes. And it's not going to be unlocked without voting as mentioned here[1] and here[2] (I don't believe the voting is live yet)

[1] https://www.coindesk.com/markets/2026/04/15/trump-backed-world-liberty-financial-proposes-unlocking-62-billion-tokens
[2] https://governance.worldlibertyfinancial.com/t/proposal-early-supporter-founder-team-partner-token-unlock/53266

[bangjoe]

I can only imagine what would've happened to WLFI's price if more tokens were unlocked, because right now, those who participated in the sale, don't have full access to everything they initially bought.

I also don't understand why would've anyone invested in WLFI? I saw it when it was first announced, the sales page and everything... And it just didn't sit right with me. I mean aside from it being backed by the president? what's so special about it?

Yes, of course, if it has been opened since the beginning they will experience a very significant decline and that is what the developers do not want to be the same as in the Melania coin and precisely the reason is because of the hype from Trump about their project so that people are interested in it even Justin Sun himself is interested because it is supported by Trump and is his family project like Eric Trump and others.
 
Other than that there is nothing special, those whales I think are looking to capitalize on the hype that can happen but unfortunately and they are frozen, which is a very big regret it seems.

[Abiky]

I would not be surprised. Look at this:

https://www.reuters.com/legal/government/trump-backed-world-liberty-financials-early-investors-wont-be-able-fully-cash-2026-04-15/

They apparently have a new proposal (people will have to vote) to make sure the remaining of the funds are only unlocked after Trump's term finishes. Token would probably be dead by then.

Most certainly. A huge market crash will follow once the tokens are "unlocked". They're keeping them "locked" right now to help protect market prices. I mean, Trump and his family are heavily-invested in this project. They've already made a lot of money with this venture. Ultimately, they'll win, while investors will lose big time. Typical of a scam. Unless, the Trump family decides to take things seriously with this project and help expand its use cases way beyond 2028 (which is the end of Trump's second term).

May this be a lesson to Justin Sun (and anyone else) not to trust a project blindly without first considering they way it's structured (either centralized or decentralized). Randomly freezing assets is typical of a centralized "shitcoin". Just like what happened with Ripple's XRP. Only time will tell the fate of WLFI.

[OmegaStarScream]

Update on this. Justin Sun is officially suing World liberty finance:

Tron founder Justin Sun said he has filed a lawsuit against Trump-family-backed World Liberty Financial for allegedly freezing his tokens and threatening to burn them “without any proper justification.”
-snip-
“I have tried in good faith to resolve this situation with the World Liberty project team without resorting to litigation. But the project team has refused my requests to unfreeze my tokens and restore my rights as a token holder. They have left me with no choice but to turn to the courts,” he added.
-snip-

It's going to be very interesting to see how he is treated by the U.S goverment after this.

It's also worth mentioning that Justin Sun settled with the SEC for 10M $ last month[1]

[1] https://www.reuters.com/legal/government/justin-sun-settles-sec-fraud-case-10-million-2026-03-05/

[asriloni]

Update on this. Justin Sun is officially suing World liberty finance:

Tron founder Justin Sun said he has filed a lawsuit against Trump-family-backed World Liberty Financial for allegedly freezing his tokens and threatening to burn them “without any proper justification.”
-snip-
“I have tried in good faith to resolve this situation with the World Liberty project team without resorting to litigation. But the project team has refused my requests to unfreeze my tokens and restore my rights as a token holder. They have left me with no choice but to turn to the courts,” he added.
-snip-

It's going to be very interesting to see how he is treated by the U.S goverment after this.

It's also worth mentioning that Justin Sun settled with the SEC for 10M $ last month[1]

[1] https://www.reuters.com/legal/government/justin-sun-settles-sec-fraud-case-10-million-2026-03-05/

This has to be one of biggest grifter war this year. Sun is so dumb to fight a fraud entity that linked to the US president while we know how his fraud case getting dropped after Trump's regime was winning the election.

So i don't be surprised if he may be facing another charge or his case may be continue. He has so many pre-mined tron coin for his own. He can sell it to recover his lose instead of fighting the a defi backed by orange guy.

One most important rule is never fight the government. So i guess he is destroying himself.