Justin Sun Accuses World Liberty Financial of Hidden Token Freeze Backdoor Amid $175M Dispute

TLDR: Justin Sun invested roughly $175 million across WLFI and TRUMP memecoin before the public fallout began. WLFI froze 595 million of Sun’s unlocked tokens worth $107 million, citing a breach of his investor agreement. WLFI borrowed $75 million in stablecoins on Dolomite against its own token, sending $40 million to Coinbase Prime. The WLFI token has dropped 76% from its all-time high, now trading near $0.079 amid ongoing legal threats. World Liberty Financial and Justin Sun are locked in a public dispute over frozen tokens, alleged misconduct, and a contract backdoor claim. Sun, the project’s largest investor with roughly $175 million in Trump-linked crypto exposure, accused WLFI of hiding a wallet freeze function from investors. WLFI denied the claims and threatened legal action. On-chain data has made portions of both sides’ activities visible to the public, raising questions across the crypto community. Justin Sun Alleges Hidden Freeze Function in WLFI Token Contract Sun first invested $30 million in WLFI in late 2024. By January 2025, he scaled that position to $75 million and was named a project advisor. He also committed $100 million to the TRUMP memecoin, bringing his total exposure to roughly $175 million. The WLFI token launched on September 1, 2025, at around $0.25 and reached a high near $0.33. Only 20% of presale tokens were unlocked at launch. Three days after launch, Sun moved approximately 50 million WLFI tokens to HTX, an exchange where he holds an advisory role. Around that same time, HTX began offering WLFI presale investors high yields for depositing and locking their newly unlocked tokens. WLFI alleges that Sun was selling tokens on the back end of his own exchange, including tokens tied to locked user balances. According to WLFI, the plan was to exit early using retail users’ locked tokens as liquidity. Sun would then use future token vestings to refill HTX user balances. WLFI says it obtained logs supporting this claim and froze his wall...