- WLFI has allegedly frozen investor funds, prompting strong backlash from several early backers of the Trump-linked crypto project.
- Ethereum developer Bruno Skvorc said his tokens were withheld after his wallet was labelled “high risk” leaving him unable to withdraw.
- Tron founder Justin Sun claimed his stake was also blocked, escalating concerns about governance and transparency.
World Liberty Financial (WLFI), a digital asset venture linked to the Trump family, is facing growing scrutiny after investors accused the project of blocking access to their holdings.
On Saturday, Bruno Skvorc, a developer with a background in Ethereum 2.0 and founder of NFT venture RMRK, alleged that WLFI refused to release his tokens, describing the situation as theft.
He shared correspondence from WLFI’s compliance division, which classified his wallet as “high risk” and therefore ineligible for release of funds. Skvorc said several other early investors had been subjected to full lock-ups from the outset, leaving them without the ability to withdraw. He compared the restrictions to a “mafia-style” setup, claiming there was no avenue for complaint or legal recourse.
Blockchain analyst ZachXBT suggested automated compliance systems may be responsible, as wallets are frequently flagged over indirect or trivial links, such as interaction with decentralised finance applications or sanctioned entities. In Skvorc’s case, previous activity involving Tornado Cash, Russian-linked platforms Garantex and Netex24, and a blacklisted dashboard appeared to trigger the restrictions.
These tools are deeply flawed.
ZachXBT, Blockchain AnalystRelated: Trump-Backed WLFI Token Debuts With US$30B Valuation as Binance Leads Listings
Tron’s Sun Sees Funds Frozen
The controversy intensified when Justin Sun, the billionaire founder of Tron, revealed that his WLFI tokens had also been frozen. Sun previously purchased US$75 million (AU$114.4 million) worth of the token and said the halt came after blockchain trackers flagged a US$9 million (AU$13.7 million) transfer from his wallet.
Speculation quickly followed that he was offloading his position, though Sun said the transfers were only minor exchange deposit tests and had no market impact.
Calling the freeze “unreasonable”, Sun argued the move contradicted the core principles of blockchain, where tokens should remain “sacred and inviolable”. He later stated he would buy an additional US$10 million (AU$15.25 million) in WLFI and another US$10 million in a related public company’s stock.
These developments come after WLFI suffered a near 50% market plunge when early investors began trading, despite the project burning 47 million tokens in an attempt to stabilise value. The episode has raised further questions over transparency, governance, and the influence of political connections in shielding the project from accountability.
Related: Tron Founder Justin Sun Sues Bloomberg Over Billionaires List Profile
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