Overview
- Justin Sun, posting Sunday, alleged the WLFI smart contract includes a concealed blacklist that lets operators freeze or seize holders’ tokens.
- He said WLFI blacklisted his wallet in September 2025, locking hundreds of millions of WLFI, and he called for his tokens to be unlocked.
- Project-linked wallets posted 5 billion WLFI as collateral on Dolomite and borrowed about $75 million, which pushed a major stablecoin pool to 100% use earlier this week and temporarily limited withdrawals.
- WLFI has told users it is not at risk of liquidation, said it repaid part of the loan, and signaled a governance proposal to address the exposure.
- The token hit a record low near $0.077 on April 11 and traded around $0.079 Sunday, and the team had not issued a specific public rebuttal to the blacklist claim at press time.