Tron Founder Justin Sun Accuses Trump-Backed Cryptocurrency Venture of Illegitimate Practices

Justin Sun, the founder of Tron, has made public accusations against World Liberty Financial (WLFI), a cryptocurrency venture associated with Donald Trump. According to Sun, WLFI had implemented illegitimate control structures in its token contract, allowing the team to freeze and confiscate property rights without notice.

The allegations came as WLFI's financial setup is under increased scrutiny. On-chain data reveals that the project borrowed around $75 million in stablecoins via self-issued tokens, raising concerns about circular financing and liquidity issues.

WLFI's model has been criticized for relying on internally issued assets to access external liquidity, which critics believe may be based on a flawed understanding of tokenomics. The project's dominance in the Dolomite protocol has also raised concerns, with WLFI holding approximately 55% of the total protocol liquidity.