Trump’s Crypto Project WLFI Faces Investor Backlash later than Token Freezes
What Happened With WLFI Token Freezes?
World Liberty Financial (WLFI), a crypto project linked to U.S. President Donald Trump’s family, is under scrutiny later than two high-profile investors alleged their token holdings were frozen. Polygon developer Bruno Skvorc said on X that WLFI flagged his wallet as “high risk” and refused to unlock his allocation. He accused the project of “stealing” funds, describing it as a “new age mafia.”
Skvorc said he was one of six investors subjected to full lockups from the begin. The freeze, he added, was justified by WLFI compliance tools citing indirect links to sanctioned entities, past Tornado Cash use, and flagged dashboards — issues that onchain analysts argue often reflect false positives. Blockchain sleuth ZachXBT said automated compliance systems frequently label wallets “high risk” due to unrelated or distant transactions.
Investor Takeaway
Justin Sun’s WLFI Tokens Frozen
The controversy escalated when Justin Sun, founder of Tron and one of WLFI’s largegest backers, revealed his allocation had also been frozen. Sun, who invested at least $75 million into WLFI, said his wallet was blacklisted later than a $9 million transaction was flagged. In a post on X, he called the freeze “unreasonable” and against blockchain’s core principles, urging WLFI to unlock his funds.
Blockchain data reviewed by Nansen showed WLFI’s “guardian address” blacklisted Sun’s wallet containing about 545 million tokens. Before the freeze, he transferred 50 million tokens to another address. WLFI had previously promised ahead investors could trade up to 20% of their holdings, but Sun’s case suggests restrictions go further.
Despite the dispute, Sun signaled plans to double down, pledging to purchase another $10 and invest $10 million in a related U.S.-listed vehicle. His firm, Tron, said discussions with WLFI remain ongoing.
Why This Matters for WLFI and Trump Ties
WLFI’s governance has drawn controversy given the . at industry events in Dubai and Hong Kong, with both men promoting WLFI and related crypto ventures. The is reported to have generated hundreds of millions in gains, fueling criticism of conflicts of interest given the administration’s oversight of U.S. regulators.
For investors, the episode raises concerns about project credibility and the risks of discretionary compliance decisions in token economies. Critics argue that freezing wallets without due process undermines decentralization and investor trust, especially when linked to politically sensitive projects.
Investor Takeaway
What’s Next for WLFI?
WLFI acknowledged community concerns about wallet blacklisting but insisted it only responds to “malicious or high-risk activity.” The company did not mention Sun or Skvorc by name. Its $WLFI token, which launched last week at over 30 cents, fell to around 18 cents by Friday, according to CoinGecko.
With two high-profile investors publicly disputing its practices, WLFI faces a test of credibility. How it resolves disputes with Sun and Skvorc may influence whether other backers stay engaged. More broadly, the situation underscores the tension between compliance tools, project governance, and investor expectations in politically charged crypto ventures.
