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Justin Sun Alleges WLFI ‘Backdoor’ Risk for USD1 Holders

cryptonews100_tggfrn by cryptonews100_tggfrn
August 23, 2026
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Justin Sun, Founding father of TRON, has as soon as once more taken a jab towards President Donald Trump-linked World Liberty Monetary (WLF). In his current X submit, Sun warned buyers in regards to the dangers he believes exist round WLFI and its stablecoin, USD1.

Sun says his legal professionals appeared in a California federal courtroom as a result of WLF wished the dispute moved into non-public arbitration and wished sure paperwork sealed.

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Justin Sun vs. World Liberty Monetary

Nonetheless, Sun was fully towards this concept, as he wished the case to stay publicly accessible.

Sun said,

We argued forcefully that this case belongs in open courtroom—and the Court docket agreed with us.

That mentioned, the choose too needs Sun and WLF to debate which company-related claims ought to stay in federal courtroom and which, if any, ought to proceed by means of arbitration. This alone has made Sun assume,

It is a important win.

Nonetheless, it doesn’t imply he has received the underlying lawsuit.

For context, Sun was considered one of WLF’s earliest and largest buyers and had invested $45 million in WLF and acquired WLFI tokens in return. Nonetheless, he claimed,

World Liberty secretly embedded a backdoor into the $WLFI sensible contract that gave themselves unilateral energy to freeze, limit, and burn any holder’s tokens with out discover or due course of.

WLF threatens Tron’s founder

Sun additional alleges that WLF used this functionality towards his personal WLFI tokens, which he describes as an illegal seizure of his property. He additionally claims that when he tried to train his authorized rights, WLF threatened him with prison referrals.

After submitting the lawsuit, Sun says he obtained a courtroom order stopping WLF from burning, destroying, reallocating, or completely disposing of his WLFI tokens.

He claims the order was obligatory as a result of WLF had allegedly threatened to destroy the tokens and had the technical capacity to take action. Not solely this, however Sun even claimed that USD1 additionally has administrative controls that might enable WLF to freeze or probably destroy tokens.

Not the primary time!

Properly, this isn’t the primary time Tron’s founder has alleged WLF. Again in April 2026, Sun also alleged that WLF deposited round 5 billion WLFI tokens as collateral on Dolomite and borrowed no less than $75 million in stablecoins, together with USD1.

Nonetheless, defying all claims, WLFI had filed a defamation lawsuit towards the billionaire crypto investor in Might 2026.
Due to this fact, this time Sun put it finest when he mentioned,

For my part, there may be critical cause to be cautious about each $WLFI and USD1.


Ultimate Abstract

  • Tron founder slams Trump’s WLF, stating the dangers that exist round WLFI and USD1.
  • Justin Sun alleges that WLF threatened him with prison referrals when he tried to train his authorized rights.



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