Justin Sun alleges a WLFI ‘backdoor’ – What does it mean for USD1 holders?
Justin Solar, Founding father of TRON, has as soon as once more taken a jab in opposition to President Donald Trump-linked World Liberty Monetary (WLF). In his current X publish, Solar warned buyers concerning the dangers he believes exist round WLFI and its stablecoin, USD1.
Solar says his attorneys appeared in a California federal courtroom as a result of WLF wished the dispute moved into non-public arbitration and wished sure paperwork sealed.
Justin Solar vs. World Liberty Monetary
Nonetheless, Solar was utterly in opposition to this concept, as he wished the case to stay publicly accessible.
We argued forcefully that this case belongs in open courtroom—and the Court docket agreed with us.
That mentioned, the decide too needs Solar and WLF to debate which company-related claims ought to stay in federal courtroom and which, if any, ought to proceed via arbitration. This alone has made Solar assume,
This can be a vital win.
Nonetheless, it doesn’t imply he has gained the underlying lawsuit.
For context, Solar was one in every of WLF’s earliest and largest buyers and had invested $45 million in WLF and obtained WLFI tokens in return. Nonetheless, he claimed,
World Liberty secretly embedded a backdoor into the $WLFI sensible contract that gave themselves unilateral energy to freeze, prohibit, and burn any holder’s tokens with out discover or due course of.
WLF threatens Tron’s founder
Solar additional alleges that WLF used this functionality in opposition to his personal WLFI tokens, which he describes as an illegal seizure of his property. He additionally claims that when he tried to train his authorized rights, WLF threatened him with legal referrals.
After submitting the lawsuit, Solar says he obtained a courtroom order stopping WLF from burning, destroying, reallocating, or completely disposing of his WLFI tokens.
He claims the order was crucial as a result of WLF had allegedly threatened to destroy the tokens and had the technical capacity to take action. Not solely this, however Solar even claimed that USD1 additionally has administrative controls that would permit WLF to freeze or probably destroy tokens.
Not the primary time!
Effectively, this isn’t the primary time Tron’s founder has alleged WLF. Again in April 2026, Solar additionally alleged that WLF deposited round 5 billion WLFI tokens as collateral on Dolomite and borrowed no less than $75 million in stablecoins, together with USD1.
Nonetheless, defying all claims, WLFI had filed a defamation lawsuit in opposition to the billionaire crypto investor in Could 2026.
Due to this fact, this time Solar put it finest when he mentioned,
For my part, there’s severe purpose to be cautious about each $WLFI and USD1.
Closing Abstract
- Tron founder slams Trump’s WLF, declaring the dangers that exist round WLFI and USD1.
- Justin Solar alleges that WLF threatened him with legal referrals when he tried to train his authorized rights.
