Trump-linked World Liberty Financial lost a key backer after its $75 million DeFi loan tied up user liquidity, with Justin Sun publicly breaking down and criticizing the project’s treatment of investors.
“Any actions taken by the WLFI team to extract fees from users and treat the crypto community like a personal ATM are illegitimate,” Sun wrote.
I have always been a strong supporter of President Trump and his pro-cryptocurrency policies.
As one of the early supporters 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…
— HE Justin Sun 👨🚀 🌞 (@justinsuntron) April 12, 2026
The criticism comes days after World Liberty Financial posted 5 billion WLFI tokens as collateral on DeFi lending platform Dolomite and borrowed around $75 million in stablecoins.
The Dolomite deposit still dominates, accounting for the majority of the protocol’s approximately $794 million in total supply liquidity.
At its peak earlier this week, the $1 pool reached 100%, temporarily preventing ordinary stablecoin depositors from accessing their funds. As of Sunday, pool utilization was down to about 82 percent, with about $158 million borrowed compared to $193 million provided.
Dolomite co-founder Corey Caplan is also an advisor to World Liberty Financial, a dual role that on-chain analysts have described as functionally that of CTO. To accommodate the WLFI deposit, Dolomite increased its WLFI supply cap 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 made by this project,” Sun continued. “We strongly oppose each of these actions. »
Frozen out of WLFI
Sun had helped stabilize the project early on by purchasing $30 million worth of WLFI tokens after a lukewarm launch raised questions about investor appetite.
Last September, WLFI froze Sun’s wallet, effectively locking the Tron founder with 595 million unlocked tokens, worth around $107 million at the time.
WLFI said the action was part of a broader action against 272 wallets 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 freeze to be the original sin of the project.
“I am the first and biggest victim,” he wrote on Sunday, “following the unjustified blacklisting of my WLFI token portfolio in 2025, which violates fundamental 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 not communicated to voters” and that “the results were predetermined.”
He notably 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 to “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% over the past week.
