Justin Sun Slams WLFI 'Backdoor' Blacklist, Calls It a Token Scandal

According to ME News, Justin Sun said in an X post on April 12 (UTC+8) that he has been a long-time supporter of President Trump and his crypto-friendly policies. Sun said he was an early backer of World Liberty Financial and invested heavily from the start, citing the project's stated goal of building a DeFi platform to expand financial freedom, remove intermediaries, and bring decentralized finance to the public. Sun alleged that WLFI did not disclose to him or other investors that the smart contract behind the WLFI token contained a hidden backdoor blacklist mechanism. He claimed the feature gives the company unilateral authority to freeze, restrict, or effectively seize a holder's token rights without notice, justification, or any form of remedy, calling it contrary to decentralization. Sun said he condemns what he described as an ongoing token scandal driven by bad actors within WLFI. He also claimed he was the first and largest victim, alleging that in 2025 WLFI illegally blacklisted his WLFI wallet, violating investor rights and blockchain fairness principles. He further accused the WLFI team of extracting fees from users, embedding undisclosed backdoors to control assets, freezing investor funds without disclosure or due process, and treating the crypto community as an 'ATM.' Sun argued these actions were never authorized through fair, transparent, good-faith community governance, and alleged that the governance votes cited as justification were neither fair nor transparent, with key information withheld, participation constrained, and outcomes predetermined. Sun said the actions have nothing to do with him or with investors who relied on the project's promises. He called for the tokens to be unlocked and for greater transparency, urging the project to 'build with integrity.' (Source: ODAILY)