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World Liberty Financial Token Hits All-Time Low Amid Justin Sun Accusations of Hidden Backdoor Controls
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World Liberty Financial Token Hits All-Time Low Amid Justin Sun Accusations of Hidden Backdoor Controls

Apr 12, 2026

Trump-backed World Liberty Financial's WLFI token plunged to an all-time low of $0.07714, declining over 10% and losing more than 21% over 30 days, after Justin Sun publicly accused the project of hidden blacklist backdoor controls in its token contract. World Liberty Financial threatened legal action against Sun, calling his claims FUD. The project has pledged approximately 5 billion of its own tokens to borrow around $75 million in stablecoins through Dolomite, where it now represents 55% of the protocol's $835.7 million total liquidity. Critics describe the structure as a closed-loop system that allows the project to convert self-minted tokens into widely recognized stablecoins with cash off-ramps, while insiders control 22.5% of the token supply valued at approximately $3.8 billion.

WLFI's Self-Collateralized Borrowing Strategy

  • ▪World Liberty Financial moved 3 billion more tokens, worth about $266 million, to a different wallet in April
  • ▪World Liberty Financial supplies approximately $458.9 million in assets to Dolomite, representing 55% of the protocol's $835.7 million total liquidity
  • ▪World Liberty Financial borrowed 11.4 million USDC and deposited 14 million USD1 in early February 2026
  • ▪World Liberty Financial distributed an additional 12.5 million USD1 directly through its treasury to Coinbase Prime, bypassing the lending process
  • ▪World Liberty Financial pledged approximately 5 billion of its own tokens to borrow approximately $75 million in stablecoins
  • ▪World Liberty Financial deposited 1.99 billion tokens into Dolomite and borrowed 31.4 million in stablecoins across transactions in late February and March

Criticism and Scam Allegations

  • ▪Founder-held tokens in World Liberty Financial are valued at approximately $3.8 billion
  • ▪Insiders control 22.5% of World Liberty Financial's token supply
  • ▪World Liberty Financial raised $550 million in a WLFI token sale

6 sources

Coingape
Justin Sun Exposes Red Flags in Trump's WLFI Amid $75M Loan Controversy
View source article
Coingape
Is Trump Backed a WLFI In Trouble? 5B Self-Collateral, $75M Borrowing Stirs Controversy
View source article
Finance
Trump-backed World Liberty Financial’s token plummets to all-time low as firm calls self-dealing accusations ‘FUD’
View source article
The Block
‘See you in court’: WLFI threatens Justin Sun after he alleges hidden blacklist backdoor in token contract
View source article
Coindesk
Tron’s Justin Sun slams Trump-backed WLFI for treating users as ‘personal ATM’ after $75 Million DeFi loan
View source article

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Related entities

Usdc

People Involved

Justin SunDonald Trump

Related Projects

World Liberty FinancialDolomite

Topics

Smart contractsAI in politicsAltcoinsAltcoin marketsCrypto market integrity & manipulation

Featured stories

Trump-Backed World Liberty Financial Uses 5 Billion WLFI Tokens to Borrow $75 Million on DeFi Platform

Apr 10, 2026 · 4 sources