Crypto Clash: Allegations of Power Abuse in Trump's World Liberty

A major investor in World Liberty Financial, linked to Donald Trump's family, claims the firm secretly included a tool that freezes token holdings. Without evidence, Justin Sun, a crypto entrepreneur, accuses World Liberty of usurping investors' property rights. The company and Sun exchange conflicting statements publicly.

A key investor in U.S. President Donald Trump's World Liberty Financial crypto venture has alleged that the company secretly implemented a mechanism allowing it to freeze private holdings. The claims, made by crypto entrepreneur Justin Sun on social media, suggest a 'backdoor blacklisting function' within the blockchain contracts used for tokens.

Sun's social media posts assert that World Liberty wielded 'unilateral power' to 'freeze, restrict, and effectively confiscate' properties of token holders, doing so without justification or recourse. Reuters has not corroborated if such a tool exists or is being utilized by World Liberty. The company has responded with a defiant message: 'See you in court'.

World Liberty, one of the Trump family's highest-profile crypto ventures, is under scrutiny amid these allegations. The firm is noted for significant income generation and promises of decentralizing finance through an app that remains unlaunched. Previous legal issues with Justin Sun and past actions by firms like Tether highlight the ongoing regulatory ambiguities in the U.S. crypto sector.

(With inputs from agencies.)