Key Highlights
- Sun is demanding WLFI disclose who controls the single guardian EOA that blacklisted his wallet, and the 3-of-5 multisig that governs the WLFI smart contract.
- On-chain records show that one anonymous address can unilaterally freeze any holder’s assets, while seizing them requires a 3-of-5 vote.
- The same multisig has parked 5 billion WLFI on Dolomite as collateral to borrow $250 million in stablecoins, making up 86% of the protocol’s entire borrow volume.
Tron founder Justin Sun has turned up the heat on World Liberty Financial again, this time publicly calling on the Trump-backed DeFi project to name the people holding the keys that can freeze any investor’s wallet at will.
In a post on X on April 13, Sun demanded that World Liberty Finance (WLFI) disclose who controls the single guardian EOA and the 3-of-5 multisig that governs the WLFI smart contract. Quoting an on-chain breakdown by analyst banteg, Sun said every investor has the right to know who actually holds the power to freeze their assets.
“A single guardian EOA, which also sits on the multisig, blacklisted my wallet. That same address is the sole owner of a second guardian Safe with a threshold of 1,” Sun wrote. “This means one person, one single individual, has the unilateral power to freeze any token holder’s assets.”
According to Sun, seizing assets requires a 3-of-5 multisig vote, but freezing only needs one signature. He called the entire governance setup “theater,” saying real power sits with one anonymous EOA and a multisig that answers to no one.
“A project that claims to stand for decentralization and financial freedom cannot concentrate this level of power in a single anonymous address. If the WLFI team has nothing to hide, they should have no difficulty identifying who controls these keys,” Sun added.
What banteg’s on-chain findings show
The thread Sun quoted lays out a damning timeline. The original WLFI token, deployed in September 2024, had no blacklist and no seizure functions, but it was upgradable. The blacklist function was added in v2 on August 24, 2025, eleven months after Sun invested and just one week before trading opened.
On November 19, 2025, another upgrade added batch reallocation, effectively a seizure tool, justified by the team as a way to recover phished funds.
The vesting contract supports cliff dates, linear schedules, and up to 8 segments per category, but WLFI used none of these to restrict Sun. Instead, it gave him a 20% instant lump-sum unlock and then punished him for using a fraction of it. The remaining 80% has no vesting schedule at all. Seven months later, claimable() still returns 0.
What stands out is that WLFI carved out a special category 3 in the vesting contract specifically for Justin Sun. He is the only user in it, while the other 519 investors sit in category 1.
Just 14 minutes before Sun activated his wallet, WLFI’s own 3-of-5 multisig configured category 3 to release 20% of his 3 billion allocation as freely transferable tokens at trading start. Three days later, after Sun moved 55 million tokens out, the guardian EOA blacklisted him.
Meanwhile, the same multisig is using 5 billion WLFI as collateral on Dolomite to borrow $250 million in stablecoins, which represents 98% of all WLFI on Dolomite and 86% of the protocol’s entire borrow volume. Two safes with the same five signers are running a USD1/USDC loop, recycling borrowed USD1 as collateral to borrow USDC and feed it back.
The backdrop
Sun’s latest demand comes a day after he went public with his sharpest broadside yet, calling WLFI’s blacklist a “trap door marketed as an open door” and declaring himself the “first and single largest victim” of the team’s actions. WLFI’s official account fired back within hours, accusing Sun of “playing the victim while making baseless allegations” and signing off with “See you in court pal.”
The feud traces back to September 4, 2025, when WLFI’s controlling address called the blacklist function and froze a wallet linked to Sun after he moved roughly $9 million in WLFI through HTX. The action locked 595 million unlocked tokens worth around $107 million at the time, plus billions more in locked tokens.
Sun called the transfers “exchange deposit tests” and denied any selling. WLFI later framed the freeze as part of a wider security sweep tied to a phishing incident that hit 272 wallets.
As The Crypto Times reported in December, Bubblemaps data showed Sun’s locked WLFI position had already shed about $60 million since the blacklist hit. The losses have only deepened since.
WLFI is currently trading near $0.079, down more than 76% from its all-time high of $0.30 set last September, with Sun’s frozen stake now worth under $50 million.
The team has yet to respond to Sun’s latest demand to publicly identify the keyholders.
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