Justin Sun Denounces Trump-Linked World Liberty Financial’s Actions: ‘This Is the Opposite of Decentralization’
Key Takeaways:
Sun revealed that it had never been disclosed to any investor that the project had a “backdoor blacklisting function” embedded in its smart contracts, giving issuers the ability to freeze, restrict, and effectively confiscate tokens owned by any investors without prior notice or justification.
The crypto entrepreneur was the victim of one of the largest blacklisting actions of World Liberty Financial in September, locking 595 million WLFI tokens that have been losing value ever since, and nearly 2.4 billion locked WLFI tokens, which were still under vesting at the time of the incident.
The platform stated that these measures were taken as an answer to “malicious or high-risk activity that could harm community members.”
Sun stressed that each one of these actions taken against investors was “illegitimate” and “never authorized by any fair, transparent, or good-faith community governance process.”
He specified:
“The governance votes cited to justify these actions were not conducted through a fair or transparent process. Key information was withheld from voters, meaningful participation was restricted, and the outcomes were predetermined.”
Finally, Sun called for unlocking the tokens blocked from him and other investors, stressing that these actions eroded trust in the project and that investors opposed “every one of these actions in the strongest possible terms.”
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