Justin Sun Declares War on WLFI: 'You Froze My $107M and Treated Users Like a Personal ATM'

Justin Sun is done playing nice with World Liberty Financial.

The Tron founder and former WLFI golden child publicly torched the Trump-backed project this weekend, accusing its team of treating crypto users like a personal ATM and extracting illegitimate fees left and right.

The beef? WLFI just deposited 5 billion WLFI tokens as collateral on DeFi lending platform Dolomite and borrowed roughly $75 million in stablecoins. The move was so massive it briefly pushed the USD1 pool to 100% utilization, locking ordinary depositors out of their funds. As of Sunday, the pool had eased to around 82% utilization with $158 million borrowed against $193 million supplied.

Sun, whose own WLFI wallet got frozen back in 2025 (locking him out of 595 million tokens worth about $107 million at the time), is now calling himself the project's "first and single largest victim."

"Every action taken by the WLFI team to extract fees from users and to treat the crypto community as a personal ATM is illegitimate," Sun wrote, making sure to direct his fire at WLFI operators while still affirming his support for President Trump's crypto-friendly policies.

The timing is spicy. Dolomite raised its WLFI supply cap to 5.1 billion tokens to accommodate the deposit, which still accounts for the majority of the protocol's roughly $794 million in total supply liquidity. Dolomite co-founder Corey Caplan also serves as an advisor to WLFI — a dual role onchain analysts have described as functionally that of CTO.

Sun also took aim at WLFI's governance process, alleging that votes used to justify the wallet freezes "were not conducted through a fair or transparent process" and that key information was withheld from voters.

WLFI's token is trading at $0.079, down 18% over the past week.

Zak Folkman, WLFI's co-founder, did not immediately respond to CoinDesk's request for comment.