Background on World Liberty Financial

World Liberty stands out as the most high-profile of several profitable crypto ventures started by the Trump family. At its launch in 2024, the company promised to empower small investors through a decentralized finance app, which has yet to be released.

Reuters analysis revealed that the Trump family earned over $460 million from World Liberty in the first half of 2025.

Justin Sun became the largest publicly known investor in World Liberty in late 2024, purchasing tens of millions of dollars’ worth of WLFI tokens and joining the company as an adviser. By January 2025, Sun’s social media posts indicated he had increased his stake to at least $75 million in tokens.

Sun previously described his investment as a strong endorsement of what he called the Trump family’s “excellent project,” according to an interview with The New York Times.

In March, Sun settled a 2023 lawsuit with the Securities and Exchange Commission for $10 million. The SEC had accused him of fraud, selling unregistered crypto securities, and concealing payments to celebrities for endorsements. Sun did not admit to any wrongdoing.

Industry Practices and Regulatory Context

World Liberty’s risk disclosures indicate that the company reserves the right to block or freeze wallet addresses and tokens it suspects are involved in illegal activity or violations of its terms of service.

Other major crypto firms, such as Tether—the issuer of the world’s largest stablecoin—also have the capability to freeze user tokens. Tether has stated it typically exercises this power in cases of suspected criminal activity or at the request of law enforcement.

The SEC declined to comment on U.S. regulations regarding such freezing actions. The regulatory environment for crypto in the United States remains uncertain, as the SEC does not have comprehensive oversight of the sector.

Sun’s Claims of Asset Freezing

In his Sunday post on X, Sun claimed to be the “first and single largest victim” of the alleged World Liberty tool, referencing the freezing of his WLFI tokens in September. At that time, World Liberty stated it did not target individuals for blacklisting, but acted in response to “malicious or high-risk activity that could harm community members.”

On Monday, Sun cited unspecified blockchain data that he said demonstrated his wallet was blacklisted by a single account with special administrative privileges. He argued this showed that one individual at World Liberty could freeze any holder’s assets, asking, “Who is that person?