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Tron’s Justin Sun slams Trump-backed WLFI for treating users as ‘personal ATM’ after $75 Million DeFi loan

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(Dolomite)

Trump-linked World Liberty Financial has lost a key backer after its $75 Million DeFi loan tied up user liquidity, with Justin Sun publicly breaking and criticizing the project’s treatment of investors.

“Every action taken by the WLFI team to extract fees from users and to treat the crypto community as a personal ATM is illegitimate,” Sun wrote.

The criticism comes days after World Liberty Financial deposited 5 billion WLFI tokens as collateral on the DeFi lending platform Dolomite and borrowed about $75 million in stablecoins.

The deposit still dominates Dolomite, accounting for a majority of the protocol’s roughly $794 million in total supply liquidity.

(Dolomite)

At its peak earlier this week, the USD1 pool hit 100% utilization, temporarily locking ordinary stablecoin depositors out of their funds. As of Sunday, the pool had eased to roughly 82% utilization, with about $158 million borrowed against $193 million supplied.

Dolomite co-founder Corey Caplan also serves as an advisor to World Liberty Financial, a dual role that onchain analysts have described as functionally that of CTO. To accommodate WLFI’s deposit, Dolomite raised its WLFI supply cap to 5.1 billion tokens.

“These actions have nothing to do with me. They have nothing to do with the investors who believed the promises this project made,” Sun continued. “We oppose every one of these actions in the strongest possible terms.”

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Frozen out of WLFI

Sun had helped stabilize the project early on by purchasing $30 million in WLFI tokens after a lukewarm launch raised questions about investor appetite.

Last September, WLFI froze Sun’s wallet, locking the Tron founder out of 595 million unlocked tokens worth about $107 million at the time.

WLFI said the action was part of a broader move against 272 wallets it linked to phishing attacks and compromised support channels, insisting it “only intervenes to protect users, never to silence normal activity.”

Sun is frames the September freeze as the project’s original sin.

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“I am the first and single largest victim,” he wrote Sunday, “as a result of their wrongful blacklisting of my WLFI token wallet back in 2025, that violates basic investor rights and blockchain principles of fairness.”

Sun also took aim at WLFI’s governance process, alleging that votes cited to justify the freezes “were not conducted through a fair or transparent process,” that “key information was withheld from voters,” and that “the outcomes were predetermined.”

Notably, he carefully separated his attack on WLFI’s operators from the President himself, opening his statement by reaffirming that he has “always been an ardent supporter of President Trump and his crypto-friendly policy” and directing his denunciation at “the bad actors at WLFI.”

WLFI’s co-founder Zak Folkman did not immediately respond to a request for comment sent by CoinDesk to his Telegram.

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WLFi is trading at $0.079, according to CoinDesk data, down 18% over the past week.

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SUI Price Prediction: Bulls Eye $10 After Textbook Breakout Signal

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Brian Armstrong's Bold Prediction: AI Agents Will Soon Dominate Global Financial

TLDR:

  • SUI broke above the $0.89–$0.90 consolidation range on the one-hour chart, signaling a bullish trend shift. 
  • Price pulled back to the $0.91–$0.905 demand zone, where analysts expect buyers to defend key support.
  • Wyckoff accumulation patterns and bullish order blocks on the weekly chart point to targets of $10–$20. 
  • SUI’s market cap stabilized above $3.6B after spiking to $3.85B, reflecting long-term holder conviction.

SUI price prediction is flashing signals that seasoned traders rarely ignore. A textbook breakout above a weeks-long consolidation range, a controlled pullback into fresh demand, and a weekly chart carrying the fingerprints of prior 1,000% rallies, the setup is building quietly but deliberately.

Whether the next move targets $0.97 or something far more ambitious, the chart is making its case without apology.

SUI Breaks Out, Pulls Back, and Sets Up a Second Shot

SUI flashed a textbook breakout on the one-hour chart this week, clearing the $0.89–$0.90 consolidation range that had capped price for an extended period. The move was sharp and deliberate. 

Bullish candles stacked above prior resistance, volume followed, and the chart shifted from a downtrend structure to a clear bullish bias in a matter of hours.

The rally did not hold its highs. SUI pulled back toward the $0.91–$0.905 area shortly after, a move that initially spooked short-term traders. However, analysts tracking the asset noted the correction lacked the hallmarks of a genuine reversal. 

No heavy sell volume. No breakdown of structure. Just a measured retreat into what is now a recognized demand zone, where previous resistance has flipped into support.

That flip is the crux of the current setup. Traders are now watching for bullish confirmation at the $0.91–$0.905 zone before positioning for another push toward the $0.96–$0.97 resistance band. 

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Until that confirmation arrives, the market remains in a wait-and-see posture at a level that could determine SUI’s next directional move.

Weekly Structure Points to Targets Far Beyond Current Levels

Step back to the weekly chart and the short-term noise gives way to a much larger technical picture. SUI has printed this pattern before.

In mid-2024 and again in mid-2025, the price dipped toward a key trendline support, gathered liquidity at those lows, and then staged parabolic advances. 

Those rallies registered gains north of 500% and, in one instance, crossed 1,000% within a matter of months. Analysts point out that SUI is currently sitting at a structurally similar position. 

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Bullish order blocks are visible at the current support zone, consistent with what Wyckoff analysis describes as smart money accumulation — a phase where institutional-level buying absorbs retail selling before a major directional move develops. 

Resistance between $3 and $5 is flagged as a potential speed bump on any extended advance. Even though historical precedent suggests momentum tends to build rather than stall once that band is cleared.

Market cap data from the past seven days adds a layer of confirmation to the broader thesis. SUI’s market cap spiked toward $3.85 billion on April 7 before pulling back and stabilizing above $3.6 billion through several corrective sessions. 

The base is holding. Long-term participants appear to be absorbing the dips rather than exiting, a dynamic that analysts say keeps the structural case for $10–$20 price targets firmly on the table.

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Free PR or Confession? Expert Thinks Adam Back Played the NYT Like a Prospectus

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Top Public Companies Holding BTC

Adam Back, the Blockstream CEO named by the New York Times as the most likely candidate behind Satoshi Nakamoto, may have had a more practical reason for cooperating with the investigation.

Several industry figures now suggest Back used the global media attention as free publicity for Bitcoin Standard Treasury Company (BSTR), his Bitcoin (BTC) treasury firm approaching a public listing.

Did Adam Back Use NYT Satoshi Story as Free BSTR Publicity?

John Carreyrou, the investigative reporter behind the explosive expose revealed that Back agreed to pose for a NYT photographer in Miami weeks before the story ran.

“If you’re IPO’ing a company — it’s pretty damn good PR. Particularly when the cost is roughly zero,” commented ETF analyst James Seyffart.

The timing matters because BSTR is completing a SPAC merger with Cantor Equity Partners I. The deal includes a $1.5 billion PIPE, the largest ever announced for a Bitcoin treasury vehicle.

BSTR plans to launch with over 30,000 BTC on its balance sheet, which would catapult its ranks among the largest public Bitcoin treasury.

Top Public Companies Holding BTC
Top Public Companies Holding BTC. Source: Bitcoin Treasuries

The merger was originally expected to close in Q1 2026, subject to SEC review and shareholder approval.

Whether Back intended the headlines or simply welcomed them, the Satoshi spotlight landed at the most commercially convenient moment possible.

The post Free PR or Confession? Expert Thinks Adam Back Played the NYT Like a Prospectus appeared first on BeInCrypto.

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Justin Sun Slams WLFI Over Token Lockups, Gets Legal Threat in Response

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DeFi

Justin Sun, the founder of the Tron layer-1 blockchain network, criticized World Liberty Financial (WLFI), a decentralized finance platform co-founded by US President Donald Trump’s sons, over lengthy lock-up periods for the platform’s governance token.

Sun said that he invested “significant capital” in WLFI as an early investor and also said that a March WLFI governance proposal to determine token lock-up periods, in which more than 76% of the voting tokens came from 10 wallets, lacked transparency. In a Sunday post on X, Sun wrote (in translation):  

“The governance votes cited to justify the above actions were not conducted through fair or transparent procedures. Key information was withheld from voters, meaningful participation was restricted, and outcomes were predetermined.”

“Justin’s favorite move is playing the victim while making baseless allegations to cover up his own misconduct,” World Liberty Financial said in response, threatening legal action against Sun over his claims. 

DeFi
Source: World Liberty Financial

The incident came amid community pushback against WLFI and confirmation that the platform was using its own governance tokens as loan collateral, causing the price of WLFI to sink to an all-time low and renewed backlash against Trump for his crypto activities.

Cointelegraph reached out to World Liberty Financial but did not obtain a response by the time of publication. 

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Related: World Liberty signals phased WLFI unlock vote after early holder backlash

WLFI token sinks to all-time low as community backlash mounts

The WLFI token hit a new all-time low on Saturday, falling to just $0.07 following news of the platform using WLFI tokens as collateral to borrow stablecoins.

Wallets linked to World Liberty Financial used WLFI tokens as collateral on Dolomite, a DeFi platform co-founded by the project’s chief technology officer, Corey Caplan, to take out the stablecoin loan.

DeFi
Source: World Liberty Financial

WLFI confirmed that it acts as an “anchor” borrower, which generates yield for the platform and value for token holders, adding that it is “one of the largest suppliers and borrowers” in the WLFI ecosystem.

“Treating the crypto community as a personal ATM is unjust and has never been authorized through any fair, transparent, good-faith community governance process,” Sun said. 

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Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions