ME News reports that on April 12 (UTC+8), Justin Sun posted on X: “I have always been a staunch supporter of President Trump and his crypto-friendly policies. As an early supporter of World Liberty Financial, I invested heavily in the project from its inception, believing in its stated vision: a DeFi platform that promotes financial freedom, eliminates intermediaries, and brings the benefits of decentralized finance to the general public. However, what was never disclosed to me or any investor was that World Liberty secretly embedded a backdoor blacklist function within the smart contract deploying the WLFI token. This function grants the company unilateral power to freeze, restrict, or effectively seize the property rights of any token holder—without notice, without justification, and without recourse. This is the antithesis of decentralization. It is a trap disguised as a door. I hereby condemn the ongoing token scandal orchestrated by bad actors within WLFI. I am the first and largest victim—back in 2025, they illegally blacklisted my WLFI token wallet, violating fundamental investor rights and the principle of fairness inherent in blockchain technology. Every action taken by the WLFI team—extracting fees from users, secretly embedding backdoors to control user assets, freezing investor funds without disclosure or due process, and treating the crypto community as their personal ATM—is illegitimate and was never authorized by any fair, transparent, or good-faith community governance process. The governance votes cited to justify these actions were not conducted fairly or transparently. Critical information was concealed from voters, meaningful participation was restricted, and outcomes were predetermined. These votes do not reflect the will of the community—they reflect the will of those who designed them. These actions have nothing to do with me. They have nothing to do with investors who believed in the project’s promises. We vehemently oppose each and every one of these actions. The WLFI team’s conduct is eroding community trust in the project. Unlock the tokens. Uphold transparency to the community. Let us build with integrity—not with deceit.” (Source: ODAILY)
Justin Sun Condemns WLFI's Token Scandal and Backdoor Blacklist
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Summary
Justin Sun criticized WLFI’s token scandal, exposing a backdoor blacklist in its smart contract. He stated that this feature allows the team to freeze or seize user assets without notice. His own wallet was blacklisted in 2025. He accused WLFI of controlling user funds and manipulating governance votes. The controversy emerges amid new token listings and ongoing token launch announcements. Sun called for greater transparency in the industry.
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