Overview
- Justin Sun, an early investor and adviser, said Sunday that World Liberty Financial hid a blacklist in the WLFI token’s smart contract that lets insiders freeze wallets, citing his own address blocked since September 2025.
- World Liberty Financial denied wrongdoing, called Sun’s claims baseless, and responded on X with a legal threat that read, “See you in court pal.”
- On-chain data shows the project pledged about 5 billion WLFI as collateral on Dolomite to borrow roughly $75 million in stablecoins, with more than $40 million later routed to Coinbase Prime.
- The setup concentrated risk across the lending venue as WLFI accounted for about 55% of Dolomite’s supplied assets and the USD1 market ran near 93% utilization, drawing scrutiny over liquidity and over Dolomite co-founder Corey Caplan also serving as WLFI’s CTO.
- WLFI slid to roughly $0.07–$0.08 over the weekend, and analytics firms say Sun’s frozen 545 million WLFI lost more than $80 million in value since the freeze, while the team says it will propose a phased unlock for retail holders.