Justin Sun Critiques Trump-Backed WLFI After $75 Million DeFi Loan Controversy
Tron’s Justin Sun slams Trump-backed WLFI for treating users as ‘personal ATM’ after $75 Million DeFi loan
Coindesk
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Justin Sun, a prominent figure in the cryptocurrency space, has publicly criticized World Liberty Financial (WLFI) for its handling of a $75 million loan secured against its tokens. He claims the project treats users as 'personal ATMs' and questions the legitimacy of its governance processes, following a controversial borrowing that restricted user access to funds.
- 01Justin Sun accuses WLFI of treating users like 'personal ATMs' after a $75 million loan.
- 02WLFI's loan against its tokens led to a temporary lockout of ordinary depositors.
- 03Sun claims to be the 'first and single largest victim' of WLFI's governance and actions.
- 04The WLFI token has seen a significant decline, trading at $0.079 after a recent drop.
- 05Sun reaffirms his support for President Trump while criticizing WLFI's management.
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Justin Sun, the founder of the Tron blockchain, has publicly denounced World Liberty Financial (WLFI) after the company borrowed $75 million against its tokens, claiming the project treats its users as 'personal ATMs.' This criticism follows WLFI's recent deposit of 5 billion WLFI tokens on the DeFi lending platform Dolomite, which led to a temporary 100% utilization of a key liquidity pool, locking out ordinary depositors. Sun, who once supported WLFI, now labels himself as its 'first and single largest victim' after his wallet was frozen in 2025 due to alleged phishing concerns. He argues that WLFI's governance processes lack transparency and fairness, asserting that critical information was withheld from voters during decision-making. As of now, WLFI's token is trading at $0.079, reflecting an 18% decline over the past week. Sun's statements highlight a growing discontent within the crypto community regarding governance and user rights in decentralized finance.
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The controversy surrounding WLFI could lead to a loss of trust among investors in decentralized finance platforms, affecting user participation and liquidity.
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