WLFI vs Justin Sun Heads to Court Over Alleged Backdoor Blacklist

World Liberty Financial (WLFI) says “see you in court” after accusing Justin Sun of wrongdoing in a growing crypto feud. Sun, founder of TRON (TRX), denies the claims and alleges WLFI embedded hidden “backdoor controls” that could freeze investor assets without clear disclosure or due process. The dispute centers on blacklist and seizure-style functions allegedly added to WLFI token contracts after launch. Reports say the initial WLFI contract (launched in September 2024) lacked blacklist/seizure features. A blacklist function was reportedly added in August 2025, and another upgrade in November introduced a “batch reallocation” mechanism, which WLFI says helps recover stolen or compromised funds. Sun claims he became a direct target after his wallet was frozen. He says WLFI allowed freezing while users had already locked capital. WLFI counters that it flagged alleged backend selling by Sun and froze his wallet for breaching contract terms, though the terms remain unclear. There are also concerns that a single guardian address may have been able to blacklist Sun, reducing the usual consensus/approval requirements. Market context: WLFI price fell roughly 2% over 24 hours and is down over 53% in 90 days, trading near $0.078, while TRX is up more than 15% over 60 days and is around $0.322 at press time. Both sides are trading accusations and legal threats, with the core issue being whether WLFI’s upgrades unfairly targeted investors via blacklist controls. WLFI now signals a court fight, raising compliance and contract-upgrade risk premiums for WLFI traders.