Trump-linked World Liberty Financial has lost a key backer after its $75 million DeFi loan limited user liquidity, and Justin Sun broke down and publicly criticized the project’s treatment of investors.
“Every action taken by the WLFI team to charge fees to users and treat the crypto community like a personal ATM is illegitimate,” Sun wrote.
I have always been an ardent supporter of President Trump and his pro-cryptocurrency policies.
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 financial platform that…
— SE Justin Sun 👨🚀 🌞 (@justinsuntron) April 12, 2026
The criticism comes days after World Liberty Financial deposited 5 billion WLFI tokens as collateral on DeFi lending platform Dolomite and borrowed around $75 million in stablecoins.
The deposit still dominates Dolomite and accounts for the majority of the protocol’s roughly $794 million in total supply liquidity.
At its peak earlier this week, the $1 pool reached 100% utilization, temporarily blocking common stablecoin depositors from accessing their funds. As of Sunday, the fund had declined to about 82% utilization, with about $158 million lent versus $193 million supplied.
Dolomite co-founder Corey Caplan also serves as an advisor to World Liberty Financial, a dual role that on-chain analysts have functionally described as that of CTO. To accommodate the WLFI deposit, Dolomite increased its WLFI supply limit to 5.1 billion tokens.
“These actions have nothing to do with me. They have nothing to do with the investors who believed in the promises this project made,” Sun continued. “We oppose each of these actions in the strongest possible terms.”
Frozen outside WLFI
Sun had helped stabilize the project from the beginning by purchasing $30 million in WLFI tokens after a lukewarm launch raised questions about investor appetite.
Last September, WLFI froze Sun’s wallet, locking the Tron founder without 595 million unlocked tokens worth around $107 million at the time.
WLFI said the action was part of a broader crackdown on 272 wallets it linked to phishing attacks and compromised support channels, insisting that it “only intervenes to protect users, never to silence normal activity.”
Sun considers the September frost the project’s original sin.
“I am the first and biggest victim,” he wrote on Sunday, “as a result of the unfair blacklisting of my WLFI token wallet in 2025, which violates basic investor rights and blockchain fairness principles.”
Sun also took aim at WLFI’s governance process, alleging that the votes cited to justify the freezes “were not conducted through a fair or transparent process,” that “key information was withheld from voters,” and that “the results were predetermined.”
In particular, he carefully separated his attack on WLFI operators from the President himself, opening his statement by reaffirming that he “has always been an ardent supporter of President Trump and his pro-cryptocurrency policies” and directing his denunciation at “the bad actors at WLFI.”
WLFI co-founder Zak Folkman did not immediately respond to a request for comment sent by CoinDesk to his Telegram.
WLFi is trading at $0.079, according to CoinDesk data, down 18% from last week.
