Justin Sun, founder of the Tron blockchain, has publicly accused the decentralized finance platform World Liberty Financial (WLFI) of engaging in unfair governance practices. Sun, an early investor in WLFI, cited lengthy token lock-up periods and alleged a lack of transparency in governance votes that determined these periods. He asserted that key information was withheld from voters and that outcomes were predetermined.
In response, WLFI denied Sun's allegations, calling them baseless and a tactic to cover his own misconduct. The platform, co-founded by sons of former US President Donald Trump, threatened legal action against Sun for his claims.
The dispute occurs as WLFI faces community backlash for reportedly using its own governance tokens as loan collateral. This practice has reportedly caused the WLFI token price to plummet to an all-time low.
WLFI confirmed its role as an "anchor" borrower, generating yield for the platform and token holders. Sun, however, criticized this as treating the crypto community as a "personal ATM" without proper authorization.