LONDON — Crypto entrepreneur Justin Sun on Sunday accused World Liberty Financial, the Trump family's primary crypto company, of misleading investors by secretly implementing a tool to unilaterally freeze and restrict private holdings of its WLFI token. Sun, who has said he spent at least $75 million on World Liberty tokens and at one point became the platform's largest investor, posted his allegations on social media platform X.

Sun claimed that World Liberty Financial set up a system granting company officials unilateral power over user accounts, including the ability to freeze them. He alleged that his own account had been frozen since September and that he had not been able to sell his holdings.

"This is the opposite of decentralization. This is a trap door marketed as an open door. I denounce the ongoing token scandals by the bad actors at WLFI," Sun posted.

According to analysis by the blockchain tracking group Bubblemaps, the value of the holdings Sun has allegedly been unable to move declined by more than $80 million to about $43 million. The platform's primary token, WLFI, had lost 74% of its value since August and was trading at around $0.08 as of Monday.

World Liberty Financial responded by accusing Sun of engaging in misconduct that warranted the freeze and by threatening a lawsuit. "We have the contracts. We have the evidence. We have the truth," the company posted. "See you in court pal."

World Liberty Financial was co-founded by Donald Trump's three sons and lists Trump as a co-founder emeritus. The platform launched in 2024 during Trump's third presidential campaign and had promised to become a world leader in the crypto and decentralized finance space. Trump was removed from any official positions at the company upon taking office, and the White House has said he is not involved in managing his family's crypto holdings.

The company's stablecoin, USD1, ranks among the 10 most heavily used stablecoins. The values of most crypto tokens have declined along with the broader crypto market.

The Securities and Exchange Commission charged Sun in 2023 with fraud over crypto trades and illicit promotion. In March, the case was dismissed after Sun agreed to pay a $10 million fine.