Tron (CRYPTO: ) founder Justin Sun escalated his attack on the Trump family-backed World Liberty Financial ($WLFI) platform on Monday, claiming its governance structure is “hollowed from the inside.”
Sun Accuses $WLFI Of Power Centralization
In an X post, Sun alleged that only one person in the company has the “unilateral power to freeze any token holder’s assets.”
Drawing on the analysis by on-chain sleuth banteg, Sun said that a single guardian externally owned account last year.
Note that certain addresses are given “guardian” roles in token contracts. These guardians have admin privileges, including the ability to call a blacklist function.
Additionally, Sun alleged that seizing assets requires a 3-of-5 multisig vote, meaning that the proposal must be signed and approved by at least three out of five designated authorized key holders.
“Every proposal, every vote, every claim of decentralized decision-making is theater,” Sun said. “The entire governance framework has been hollowed out from the inside.”
Sun Demands Transparency
He called on the company to reveal the identity of the individuals, adding, “Every investor has the right to know who holds the power to freeze their assets.”
World Liberty Financial and Sun didn’t immediately return Benzinga’s request for a comment.
The New Crypto Flashpoint
World Liberty Financial accused Sun of making “baseless allegations” to mask his own wrongdoings and threatened legal action.
Sun’s wallet was blacklisted last year following a transfer of $WLFI worth more than $9 million to an unknown address.
The cryptocurrency billionaire continues to be a top holder of $WLFI, with holdings exceeding $44 million, according to Arkham Intelligence
Price Action: At the time of writing, $WLFI was trading at $0.08156, up 3.54% in the last 24 hours, according to data from Benzinga Pro.
Disclaimer: This content was partially produced with the help of and was reviewed and published by Benzinga editors.
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