Justin Sun, the founder of the TRON network, has recently revealed an exclusive controversy. Specifically, Justin Sun says that the World Liberty Finance ($WLFI) project linked to U.S. President Donald Trump has some backdoor functions when it comes to smart contracts. As per Justin Sun’s official social media announcement, he publicly denounces World Liberty Financial for its violations of decentralization and transparency. Particularly, the $WLFI tokens within a hidden blacklisting framework of the project enable the confiscation or freezing of consumer assets without any recourse or notice.
I have always been an ardent supporter of President Trump and his crypto friendly policy. As an early supporter who invested heavily in World Liberty Financial, I did so because I believed in the vision that was presented to the public: a decentralized finance platform that…
— H.E. Justin Sun 👨🚀 🌞 (@justinsuntron) April 12, 2026
Justin Sun Exposes Smart Contract Backdoor of WLFI
The TRON founder asserted that World Liberty Financial contains a smart contract function that permits the platform to freeze or even confiscate consumer assets without recourse or notice. Hence, this infringes on the decentralization principles, diminishing blockchain fairness and investor rights. Additionally, Justin Sun has denounced the initiative, asserting having no prior knowledge of this controversy.
The respective statement has triggered a wider debate within the crypto community, increasing concerns regarding investor protection and governance integrity. The TRON founder added that just like him, none of the other investors knew about the respective backdoor functions. So, this move reportedly goes against the project’s vision of bolstering financial freedom via decentralized finance (DeFi).
TRON Founder Warns Misconduct Eliminates Confidence in Overall Blockchain Ethos
According to Justin Sun, he himself witnessed the blacking out of his wallet back in 2025. As per him, this made him the largest victim suffering such actions. Additionally, to justify the actions of World Liberty Financial, the company reportedly manipulates votes. Moving on, the project also withholds information from the participants, violating transparency principles.
Thus, such governance failures denote the agenda of the parties controlling the project rather than representing the community’s will. Therefore, he has denounced the project while cautioning that such misconduct eliminates confidence in blockchain ethos.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Scallop Protocol on Sui Hit by Flash Loan Attack, $142K Drained via Oracle Manipulation
Gate News message, April 26 — Scallop Protocol, a lending platform on the Sui blockchain, suffered a flash loan exploit targeting a deprecated side contract linked to its sSUI rewards pool, resulting in a loss of approximately $142,000 (150,000 SUI). The attack exploited oracle price feed
GateNews3h ago
22-Year-Old Sentenced to 70 Months for $263 Million Crypto Theft Money Laundering
California resident Evan Tangeman, 22, was sentenced on Friday to 70 months in federal prison for his role laundering proceeds from a multi-state cryptocurrency theft ring that stole approximately $263 million in digital assets from victims, according to the U.S. Department of Justice. U.S.
CryptoFrontier4h ago
Litecoin Suffers Deep Chain Reorganization After MWEB Privacy Layer Zero-Day Exploit
Gate News message, April 26 — Litecoin underwent a deep chain reorganization on Saturday afternoon after attackers exploited a zero-day vulnerability in its MimbleWimble Extension Block (MWEB) privacy layer, according
GateNews5h ago
Address Linked to Avi Eisenberg Shows New On-Chain Activity, Raising Security Concerns
Gate News message, April 26 — Blockchain analytics platform Arkham has identified renewed on-chain activity from an address believed to be connected to Avi Eisenberg, the attacker who profited approximately $110 million from the 2022 Mango Markets exploit. Eisenberg was previously sentenced to
GateNews7h ago
Sui DeFi lending protocol Scallop is hacked, with a vulnerability in the old contract leading to 150k SUI stolen
Scallop was attacked on the Sui chain, and the side contract involved led to the sSUI rewards pool being exploited. Approximately 150k SUI were stolen. The core contract is secure, and deposits and withdrawals have been restored. The official statement applies only to the deprecated rewards contract; users’ funds were not affected. Former NEAR developer Vadim said the vulnerability originated from an outdated V2 package from 17 months ago, where not initializing last_index caused rewards to accumulate starting in 2023. The fix requires adding a version field to the shared object and strengthening version checks to prevent risks caused by outdated packages.
ChainNewsAbmedia7h ago
Scallop Discovers sSUI Reward Pool Vulnerability, Suffers 150K SUI Loss but Pledges Full Reimbursement
Gate News message, April 26 — Scallop, a lending protocol in the Sui ecosystem, announced the discovery of a vulnerability in an auxiliary contract associated with its sSUI reward pool, resulting in a loss of approximately 150,000 SUI. The affected contract has been frozen, and Scallop confirmed
GateNews12h ago
