World Liberty Monetary has challenged its largest personal investor to a authorized struggle after he publicly accused the venture of embedding a hidden freeze perform in its token contract.
The dispute marks a pointy flip in a relationship that started with a $30 million funding in November 2024.
World Liberty Monetary Activates Its Largest Backer: See You in Court docket
The investor, Tron founder Justin Solar, poured over $75 million into the platform and describes himself as the primary and single largest sufferer of the venture’s blacklisting follow.
In December 2024, the World Liberty Monetary cleared its cbBTC portfolio of 102.9 tokens price $10.4 million to accumulate 103.15 WBTC.
The next day, Solar was named an advisor to WLFI, highlighting his rising curiosity within the DeFi venture and the rising relationship between WLFI and WBTC.
Solar’s allegations heart on a sensible contract perform he says was by no means disclosed to buyers. He claims the mechanism grants WLFI unilateral energy to freeze or prohibit any token holder’s belongings with out discover or recourse.
“Does anybody nonetheless imagine Justin Solar? Justin’s favourite transfer is taking part in the sufferer whereas making baseless allegations to cowl up his personal misconduct. Similar playbook, completely different goal. WLFI isn’t the primary. We have now the contracts. We have now the proof. We have now the reality. See you in court docket pal,” wrote WLFI.
His pockets was blacklisted in September 2025 after on-chain information confirmed outbound token transfers, together with one price $9 million.
Solar’s frozen holdings have since misplaced roughly $60 million in worth because the WLFI token value collapsed, leaving him unable to promote, hedge, or rebalance his publicity. WLFI has maintained the freeze was a safety measure, not a focused motion.
The dispute has drawn consideration to a separate however associated concern. A DeFi analyst flagged that Dolomite, a lending protocol, is permitting $292 million to be borrowed towards $400 million in WLFI collateral, with $158 million in USD1 already drawn.
The analyst famous that Dolomite’s founder can also be WLFI’s CTO, elevating direct conflict-of-interest questions.
WLFI tokens hit a report low of $0.077 on April 11 and traded at $0.079 at press time, down roughly 76% from their all-time excessive of $0.30 set final September.
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