Trump-linked World Liberty Monetary has misplaced a key backer after its $75 Million DeFi mortgage tied up person liquidity, with Justin Solar publicly breaking and criticizing the challenge’s remedy of buyers.
“Each motion taken by the WLFI crew to extract charges from customers and to deal with the crypto neighborhood as a private ATM is illegitimate,” Solar wrote.
I’ve at all times been an ardent supporter of President Trump and his crypto pleasant coverage.
As an early supporter who invested closely in World Liberty Monetary, I did so as a result of I believed within the imaginative and prescient that was offered to the general public: a decentralized finance platform that…
— H.E. Justin Solar 👨🚀 🌞 (@justinsuntron) April 12, 2026
The criticism comes days after World Liberty Monetary deposited 5 billion WLFI tokens as collateral on the DeFi lending platform Dolomite and borrowed about $75 million in stablecoins.
The deposit nonetheless dominates Dolomite, accounting for a majority of the protocol’s roughly $794 million in whole provide liquidity.
At its peak earlier this week, the USD1 pool hit 100% utilization, quickly locking odd stablecoin depositors out of their funds. As of Sunday, the pool had eased to roughly 82% utilization, with about $158 million borrowed towards $193 million equipped.
Dolomite co-founder Corey Caplan additionally serves as an advisor to World Liberty Monetary, a twin position that onchain analysts have described as functionally that of CTO. To accommodate WLFI’s deposit, Dolomite raised its WLFI provide cap to five.1 billion tokens.
“These actions don’t have anything to do with me. They don’t have anything to do with the buyers who believed the guarantees this challenge made,” Solar continued. “We oppose each considered one of these actions within the strongest attainable phrases.”
Frozen out of WLFI
Solar had helped stabilize the challenge early on by buying $30 million in WLFI tokens after a lukewarm launch raised questions on investor urge for food.
Final September, WLFI froze Solar’s pockets, locking the Tron founder out of 595 million unlocked tokens price about $107 million on the time.
WLFI mentioned the motion was a part of a broader transfer towards 272 wallets it linked to phishing assaults and compromised assist channels, insisting it “solely intervenes to guard customers, by no means to silence regular exercise.”
Solar frames the September freeze because the challenge’s authentic sin.
“I’m the primary and single largest sufferer,” he wrote Sunday, “because of their wrongful blacklisting of my WLFI token pockets again in 2025, that violates primary investor rights and blockchain rules of equity.”
Solar additionally took goal at WLFI’s governance course of, alleging that votes cited to justify the freezes “weren’t carried out by means of a good or clear course of,” that “key info was withheld from voters,” and that “the outcomes had been predetermined.”
Notably, he rigorously separated his assault on WLFI’s operators from the President himself, opening his assertion by reaffirming that he has “at all times been an ardent supporter of President Trump and his crypto-friendly coverage” and directing his denunciation at “the unhealthy actors at WLFI.”
WLFI’s co-founder Zak Folkman didn’t instantly reply to a request for remark despatched by CoinDesk to his Telegram.
WLFi is buying and selling at $0.079, in line with CoinDesk knowledge, down 18% over the previous week.