Tron’s Justin Sun slams Trump-backed WLFI for treating users as ‘personal ATM’ after $75 Million DeFi loan
Once WLFI’s largest outside backer, Sun is going public days after the Trump-family venture borrowed $75 million against its own token on a DeFi protocol advised by one of its own insiders.
What to know:
- Justin Sun, once a major backer of World Liberty Financial, has publicly broken with the project, accusing its team of treating users like a “personal ATM” and extracting illegitimate fees.
- The backlash follows WLFI’s move to deposit 5 billion WLFI tokens on DeFi lender Dolomite and borrow about $75 million in stablecoins, a trade that briefly pushed a key pool to 100 percent utilization and locked out ordinary depositors.
- Sun, whose WLFI wallet was frozen in 2025 as part of a broader blacklist, now calls himself the project’s “first and single largest victim” and alleges WLFI’s governance votes were neither fair nor transparent, as the token trades around $0.079 after a sharp weekly decline.
I have always been an ardent supporter of President Trump and his crypto friendly policy.
As an early supporter who invested heavily in World Liberty Financial, I did so because I believed in the vision that was presented to the public: a decentralized finance platform that…
— H.E. Justin Sun 👨🚀 🌞 (@justinsuntron) April 12, 2026
The criticism comes days after World Liberty Financial deposited 5 billion WLFI tokens as collateral on the DeFi lending platform Dolomite and borrowed about $75 million in stablecoins.
The deposit still dominates Dolomite, accounting for a majority of the protocol’s roughly $794 million in total supply liquidity.
At its peak earlier this week, the USD1 pool hit 100% utilization, temporarily locking ordinary stablecoin depositors out of their funds. As of Sunday, the pool had eased to roughly 82% utilization, with about $158 million borrowed against $193 million supplied.
