TRON Founder Accuses World Liberty Financial of Hiding 'Backdoor' in USD1 Stablecoin

Justin Sun, founder of TRON, has accused World Liberty Financial (WLF) of secretly embedding a 'backdoor' in its USD1 stablecoin smart contract. This alleged backdoor would allow WLF to freeze or destroy any holder's tokens without notice.

Sun claims he invested $45 million in WLF and received WLFI tokens, but WLF used the backdoor against his own tokens, allegedly freezing them without due process. Sun further alleges that when he attempted to exercise his legal rights, WLF threatened him with criminal referrals.

The case has been ongoing since April 2026, with Sun previously alleging that WLF deposited around 5 billion WLFI tokens as collateral on Dolomite and borrowed at least $75 million in stablecoins. The judge has agreed to keep the case publicly accessible, but is still considering which claims should proceed through arbitration.

Sun views this development as a 'significant win,' but emphasizes that it does not mean he has won the underlying lawsuit. He urges investors to be cautious about both WLFI and USD1 due to the alleged risks involved.