Justin Sun Accuses Trump-Linked Crypto Firm of Freezing Assets and Blacklisting Users
Trump’s largest crypto venture investor accuses company of freezing account and secret blacklisting
The Guardian
Image: The Guardian
Justin Sun, the largest investor in Donald Trump’s crypto venture World Liberty Financial, claims the company has secretly implemented a tool to freeze users' cryptocurrency holdings. He alleges that this tool allows unilateral asset confiscation without cause. World Liberty has denied these claims and plans to take legal action against Sun.
- 01Justin Sun alleges World Liberty Financial can freeze users' cryptocurrency holdings unilaterally.
- 02He claims the company has a 'backdoor blacklisting function' embedded in its blockchain contracts.
- 03World Liberty Financial denies the allegations, asserting it only acts against malicious activities.
- 04The company is linked to Donald Trump's family and has generated significant income.
- 05Regulatory oversight of cryptocurrency remains limited in the United States.
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Justin Sun, a prominent crypto entrepreneur and the largest investor in World Liberty Financial, has accused the company of secretly implementing a tool that allows it to freeze users' cryptocurrency holdings. In a series of posts on social media platform X, Sun claimed that World Liberty has embedded a 'backdoor blacklisting function' in its blockchain contracts, giving it the power to freeze and restrict token holders' assets without cause. Sun stated he was the 'first and single largest victim' of this alleged tool, citing an incident in September when his holdings were frozen. World Liberty Financial, co-founded by the Trump family, generated over $460 million in income in the first half of 2025. The company responded to Sun's allegations by stating they have evidence to support their case and are prepared to pursue legal action. The Securities and Exchange Commission (SEC) has not commented on the regulatory implications of such freezes, highlighting the ongoing uncertainty surrounding cryptocurrency regulations in the United States.
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If Sun's claims are substantiated, it could raise concerns among investors about the security and control of their cryptocurrency assets.
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More about World Liberty Financial

Justin Sun Critiques World Liberty Financial's New Token Unlock Proposal as 'Tyranny'
Benzinga • Apr 16, 2026

Justin Sun Critiques WLFI's Governance Proposal Amid Ongoing Conflict
Coindesk • Apr 16, 2026

World Liberty Financial Proposes Unlock Plan for 62 Billion Tokens Amid Governance Scrutiny
Cointelegraph • Apr 15, 2026
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