USD1 Stablecoin Accused of Backdoor Transfer Vulnerability

Justin Sun, founder of Tron (TRX), has raised concerns about World Liberty Financial's stablecoin USD1. He claims that its admin privileges allow operators to transfer tokens from user accounts without consent, effectively creating a backdoor.

Sun highlighted the issue with cold wallets and multisignature wallets being unable to block such transfers. This creates a vulnerability as the function was reportedly implemented without the approval of WLFI token holders.

The discrepancy between the source code published on World Liberty's official GitHub and the code running on the live USD1 system suggests that the backdoor function was added later, even before the WLFI token launch.