3 days ago
Once WLFI's largest extracurricular backer, Sun is going nationalist days aft the Trump-family task borrowed $75 cardinal against its ain token connected a DeFi protocol advised by 1 of its ain insiders.
Apr 12, 2026, 11:49 a.m.
Trump-linked World Liberty Financial has mislaid a cardinal backer aft its $75 Million DeFi indebtedness tied up idiosyncratic liquidity, with Justin Sun publically breaking and criticizing the project’s attraction of investors.
“Every enactment taken by the WLFI squad to extract fees from users and to dainty the crypto assemblage arsenic a idiosyncratic ATM is illegitimate,” Sun wrote.
I person ever been an ardent protagonist of President Trump and his crypto affable policy.
As an aboriginal protagonist who invested heavy successful World Liberty Financial, I did truthful due to the fact that I believed successful the imaginativeness that was presented to the public: a decentralized concern level that…
The disapproval comes days aft World Liberty Financial deposited 5 cardinal WLFI tokens arsenic collateral connected the DeFi lending level Dolomite and borrowed astir $75 cardinal successful stablecoins.
The deposit still dominates Dolomite, accounting for a bulk of the protocol's astir $794 cardinal successful full proviso liquidity.
(Dolomite)At its highest earlier this week, the USD1 excavation deed 100% utilization, temporarily locking mean stablecoin depositors retired of their funds. As of Sunday, the excavation had eased to astir 82% utilization, with astir $158 cardinal borrowed against $193 cardinal supplied.
Dolomite co-founder Corey Caplan besides serves arsenic an advisor to World Liberty Financial, a dual relation that onchain analysts person described arsenic functionally that of CTO. To accommodate WLFI's deposit, Dolomite raised its WLFI proviso headdress to 5.1 cardinal tokens.
“These actions person thing to bash with me. They person thing to bash with the investors who believed the promises this task made,” Sun continued. “We reason each 1 of these actions successful the strongest imaginable terms.”
Frozen retired of WLFI
Sun had helped stabilize the task aboriginal connected by purchasing $30 cardinal successful WLFI tokens aft a lukewarm motorboat raised questions astir capitalist appetite.
Last September, WLFI froze Sun’s wallet, locking the Tron laminitis retired of 595 cardinal unlocked tokens worthy astir $107 cardinal astatine the time.
WLFI said the enactment was portion of a broader determination against 272 wallets it linked to phishing attacks and compromised enactment channels, insisting it "only intervenes to support users, ne'er to soundlessness mean activity."
Sun is frames the September frost arsenic the project's archetypal sin.
"I americium the archetypal and azygous largest victim," helium wrote Sunday, "as a effect of their wrongful blacklisting of my WLFI token wallet backmost successful 2025, that violates basal capitalist rights and blockchain principles of fairness."
Sun besides took purpose astatine WLFI's governance process, alleging that votes cited to warrant the freezes "were not conducted done a just oregon transparent process," that "key accusation was withheld from voters," and that "the outcomes were predetermined."
Notably, helium cautiously separated his onslaught connected WLFI's operators from the President himself, opening his connection by reaffirming that helium has "always been an ardent protagonist of President Trump and his crypto-friendly policy" and directing his denunciation astatine "the atrocious actors astatine WLFI."
WLFI’s co-founder Zak Folkman did not instantly respond to a petition for remark sent by CoinDesk to his Telegram.
WLFi is trading astatine $0.079, according to CoinDesk data, down 18% implicit the past week.
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