'This Is a Trap': Donald Trump’s Crypto Venture Faces Severe Backlash From Raging Investors

President Donald Trump’s family crypto venture, World Liberty Financial Inc., is currently facing strong criticism from its investors. Reports have suggested that the company had secretly built controls that allowed insiders to freeze their token holders’ funds.

This did not sit well with the investors, who denounced the move and publicly criticized the project. The value of the company's tokens has declined following the disclosure, with some investors raising concerns about outstanding loans and the possibility of positions being liquidated.

Justin Sun, a billionaire who backed World Liberty Financial with more than $10 million, publicly criticized the project on social media.

In a long post on X, Sun alleged that the company had built a mechanism allowing it to freeze investor funds without notice and mentioned how the project confiscated the property rights of any token holder.

The investor stated that he was an early supporter of World Liberty Financial based on the vision "presented to the public" — specifically, that the platform would promote financial freedom and remove financial intermediaries.

He alleged that he and other investors were not informed of a critical feature built into the project.

Sun said the project included a "backdoor blacklisting function in the smart contract to deploy WLFI tokens," giving the company "unilateral power to freeze, restrict and effectively confiscate the property rights of any token holder" without notice, cause or recourse.

"This is the opposite of decentralization. This is a trap door marketed as an open door," Sun said.

He described the situation as an "ongoing token scandal by the bad actors at WLFI" and said his own wallet had been blocked in 2025, making him, in his words, the "first and single largest victim" of the project's practices.

He called the action a violation of basic investor rights and blockchain principles.

Sun also alleged that key information had been withheld from voters, limiting meaningful participation and predetermining outcomes.

"These votes do not represent the will of the community — they represent the will of those who designed them," he said and added that he opposes everyone involved in the project "in the strongest possible terms."

Sun's public criticism drew a range of responses on social media, with many users expressing little sympathy for his situation. Netizens shared their views on the incident.

One user wrote, "Scammer got scammed by other scammers. What am I missing here?"

Another user wrote, "Everyone reading your tweet whilst knowing you were fully aware of the back door."

A third user added, "You benefited from a slimy pardon. You bought your freedom with it. It was obvious from the start what the Trump family was doing. [expletive] around and find out."

One individual opined, “When the biggest degen gets scammed by none other than president.”

Another stated, “[expletive]. You were able to look past the failed businesses, r*** allegations and blatant racism. You thought you were smarter than everyone else, and your greed compelled you. You deserve everything you got. Or lost.”

An individual wrote, “You expect us to believe that you didn’t know about this. You likely helped plan it, you [expletive] criminal. [expletive] you and all the rest of the grifting leeches in this space.”