Justin Sun Criticizes WLFI Supported by Trump for Treating Users as "Personal ATM Machines"

World Liberty Financial Company, which has connections with Mr. Trump, has lost a major investor after their $75 million DeFi loan caused liquidity issues for users, with Justin Sun publicly criticizing the project’s treatment of investors.
“Any actions taken by the WLFI team to charge fees from users and treat the crypto community like a personal ATM are illegal,” Sun wrote.

The criticism comes a few days after World Liberty Financial sent 5 billion WLFI tokens as collateral on the DeFi lending platform Dolomite and borrowed approximately $75 million in stablecoins.
This capital still dominates Dolomite, holding the majority of the protocol’s total liquidity supply of around $794 million.

At the peak earlier this week, the USD1 group reached 100% utilization, temporarily locking access to the funds of regular stablecoin depositors. As of Sunday, the group’s utilization had dropped to about 82%, with approximately $158 million borrowed compared to $193 million supplied.
Corey Caplan, co-founder of Dolomite and also an advisor to World Liberty Financial—a dual role that on-chain analysts describe as equivalent to the CTO position—stated that to meet WLFI’s deposits, Dolomite increased the WLFI supply cap to 5.1 billion tokens.
“These actions have nothing to do with me. They also have nothing to do with the investors who trusted the promises made by this project,” Sun continued. “We strongly oppose all these actions.”

Removed from WLFI
Sun helped stabilize the project early on by purchasing $30 million worth of WLFI tokens after a lackluster launch raised questions about investor interest.
Last September, WLFI froze Sun’s wallet, preventing Tron founder from accessing 595 million unvested tokens worth about $107 million at that time.
WLFI stated that this move was part of a broader effort targeting 272 electronic wallets they claimed were involved in scams and compromised support channels, asserting that they “only intervene to protect users, never to block normal activities.”

Sun considers the September freeze to be the original sin of the project.
“I am the first and biggest victim,” he wrote on Sunday, “because they wrongfully blacklisted my WLFI token wallet in 2025, which violates investors’ fundamental rights and the principles of fairness in blockchain.”
Sun also criticized WLFI’s governance process, accusing that the votes cited to justify the freeze “were not conducted through a fair or transparent process,” that “important information was hidden from voters,” and that “the outcome was predetermined.”

Notably, he carefully distinguished his criticism of WLFI’s operators from the President himself, beginning his statement by reaffirming that he “has always been a strong supporter of President Trump and his crypto-friendly policies,” and directing his condemnation at “the bad actors at WLFI.”

Zak Folkman, co-founder of WLFI, did not immediately respond to a comment request sent by CoinDesk to his Telegram account.
According to CoinDesk data, WLFI is trading at $0.079, down 18% from last week.