Key Highlights
- The WLFI cryptocurrency is down more than 20% in a week to reach new lows.
- Justin Sun accuses a single guardian wallet of freezing user funds, questioning the project’s decentralization and calling its governance structure misleading.
- The recent minting of $25 million and burning of $9 million in USD1 stablecoins has intensified scrutiny.
The governance token of World Liberty Financial (WLFI) has dropped over 20% in the past week, after Tron founder Justin Sun accused the Trump-linked DeFi project of secretly embedding a hidden blacklist backdoor in its smart contract.
The event had an intense effect on the WLFI token. According to CoinMarketCap data, WLFI is trading at $0.07913, down 21.35% in the past week. Its all-time high of $0.46 was recorded on September 1, 2025; however, it hit a fresh all-time low of $0.07714 just two days ago on April 11. The token notes an 82.8% drop from peak levels, mostly influenced by the series of events.
The crash began on April 8, 2026, as the price dropped from $0.1 to $0.09, which may look small in digits, but that’s a 10% drop right there. Since then, the price has dropped every day till today. On April 9, the price went to $0.089, followed by $0.080, $0.079, and $0.078 recorded on April 10, 11, and 12, respectively, showing over a 12% loss.
Details of the accusation
Tron founder Justin Sun has demanded that World Liberty Financial publicly reveal who controls the single guardian Externally Owned Account (EOA) and 3 of 5 multisigs governing its smart contract.
Sun claimed that one anonymous individual has the unilateral power to freeze any investor’s tokens through the guardian EOA, while asset seizure needs multisig approval. He referred to the governance setup as “theatre” and underscored a custom vesting category made only for his 3 billion WLFI allocation.
He also revealed that his own substantial WLFI holdings were blacklisted in 2025 after some wallet movements, which resulted in a restriction on selling and tens of millions in paper losses. He has also demanded that the team identify themselves. He also referred to the project as ‘a trap door marketed as an open door.”
The latest activity
World Liberty Financial (WLFI) has minted $25 million in fresh USD1 stablecoins and burned around $9 million worth in the past 24 hours on April 13, as reported by blockchain analytics platform Arkham Intelligence.
Blockchain data reveals multiple large mint transactions channeled via custody channels and direct project addresses, with various burns directed to null addresses.
The on-chain activity occurred amid the intense criticism faced by the project due to borrowing scrutiny on the Dolomite lending platform and a sharp decline in the value of its native governance token.
The data reveals two notable 25 million USD1 mint events around ten hours ago, one involving Bitgo Custody. At the same time, three burn transactions sent around $3 million each to null addresses. The first activity was noted ten hours ago, the second one was four hours ago, and the third one was around 30 min ago at the time of this writing.
Such mint-and-burn operations, however, are common for stablecoin issuers to manage liquidity, collateral backing, and market supply. But in this case, the community ignites a debate revolving around transparency and fund management.
Broader context
The latest series highlights the increasing pressures on high-profile DeFi projects. The USD1 adjustments may target backing lending liquidity or restoring borrowing capacity on platforms like Dolomite.
The token depreciation, public spats, and external risk scrutiny have somehow crushed the community’s trust. Without proper disclosure by the World Liberty Financial (WLFI) team, it is likely that the project will continue to suffer from reputation issues and market pressure.
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