Justin Sun Calls on WLFi to Identify Parties Controlling Freeze Powers

Justin Sun Calls on WLFi to Identify Parties Controlling Freeze Powers
Table of Contents

TL;DR

  • Governance Dispute: Justin Sun challenges WLFI to reveal who controls guardian accounts after alleging unilateral freeze powers.
  • Blacklisting Conflict: Sun says his WLFI tokens were unfairly frozen following a flagged $9 million transfer, intensifying scrutiny of the project’s decision‑making.
  • Market Impact: Sun’s criticism adds pressure as WLFI drops to $0.080 amid concerns over governance, lending activity, and transparency.

Justin Sun has intensified pressure on World Liberty Financial by urging the team to reveal who controls the guardian accounts overseeing its smart contracts. Sun stated that the current setup enables a single guardian EOA to dominate a second guardian safe, thereby creating what he described as unilateral authority to freeze token holders. His comments followed claims that his own wallet had been blacklisted without justification, prompting Justin Sun to demand clarity around the platform’s governance structure.

Concerns Over Centralized Control

Justin Sun argued that WLFI’s guardian configuration concentrated too much power in one individual, raising questions about how freeze permissions were assigned. He pointed to a March vote showing that 76% of voting power came from just 10 wallets, calling it a troubling sign of influence imbalance. WLFI has not addressed the substance of Justin Sun’s latest claims. However, the project previously accused him of spreading false allegations and threatened legal action. Justin Sun maintains that his presale tokens were unfairly frozen.

Blacklisting Dispute Escalates

The conflict escalated after blockchain data platforms flagged Justin Sun’s WLFI address for a $9 million transfer in September 2025. Justin Sun said the freeze was unreasonable and urged the team to unlock his investment. WLFI’s response focused on defending its actions rather than explaining the guardian structure. The dispute has fueled broader concerns about how the project handles enforcement decisions and whether token holders face similar risks.

Lending Activity Raises New Questions

Lending Activity Raises New Questions

Justin Sun’s criticism comes as WLFI faces scrutiny over large token deposits on Dolomite, a lending platform tied to its CTO. Onchain data showed WLFI‑linked wallets depositing about 5 billion tokens, borrowing $75 million in stablecoins, and moving more than $40 million to Coinbase Prime. Analysts warned that lenders could face losses if WLFI’s price nears liquidation levels. WLFI said the token remains well above that threshold.

Market Pressure Intensifies

WLFI fell to roughly $0.080 on Monday as concerns around governance and collateral use mounted. Justin Sun’s dispute added to the pressure, while other Trump‑linked tokens also hit new lows. Some large holders resumed TRUMP accumulation ahead of an April 25 event at Mar‑a‑Lago, signaling selective confidence despite broader market weakness.

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