Justin Solar has accused World Liberty Monetary, or WLFI, of hiding controls that would freeze token holders’ wallets.
Abstract
- Justin Solar mentioned WLFI hid blacklist controls that would freeze wallets with out discover or recourse.
- Onchain information tied the challenge to massive token-backed borrowing that drew contemporary criticism from observers.
- WLFI confronted added strain as token costs fell and liquidity issues deepened throughout controversy once more.
The claims add new strain to the challenge as onchain exercise, borrowing patterns, and token losses draw extra consideration.
Solar mentioned he backed WLFI as a result of it offered itself as a decentralized finance platform constructed to develop monetary entry. He wrote that the challenge later revealed a really totally different construction, one which gave the corporate direct management over token holders’ entry.
In his assertion, Solar claimed the WLFI sensible contract contained a “backdoor blacklisting perform.” He mentioned that characteristic may let the corporate “freeze, limit, and successfully confiscate” belongings with out discover or recourse. No response from WLFI was included within the materials offered.
Solar mentioned he was “the primary and single largest sufferer” of the alleged blacklist system. He claimed WLFI blocked his pockets in 2025 and mentioned the motion violated investor rights and primary blockchain requirements tied to equity and transparency.
He additionally challenged the challenge’s governance course of. Solar mentioned votes used to assist these actions weren’t honest or clear. He argued that key information have been withheld from voters and that participation was restricted earlier than outcomes have been determined.
Furthermore, the dispute comes as WLFI additionally faces questions over its use of self-issued belongings in lending exercise. The challenge dedicated massive quantities of its personal tokens and stablecoin to safe exterior liquidity.
Blockchain information cited within the report confirmed that WLFI used round $14 million in USD1 to borrow about $11.4 million in USDC in February. Different reported transfers and deposits later pushed whole borrowing above $75 million, whereas the challenge’s presence on Dolomite grew to a big share of the protocol’s liquidity.
Worth strain provides to the dispute
Market information in the identical report confirmed WLFI falling greater than 21% over the previous 30 days. The token traded beneath $0.08 because the accusations circulated and as issues round liquidity use and withdrawals stayed in focus.
The report additionally mentioned USD1 pool utilization neared 93% and that WLFI moved 3 billion tokens in early April. Solar mentioned the challenge ought to “unlock the tokens and uphold transparency” as strain across the platform continues to construct.
