- Solar invested $75 million in WLFI and was appointed as an advisor earlier than his pockets was frozen.
- WLFI alleges that Solar used retail buyers’ locked tokens as early exit liquidity for HTX.
- Solar calls the hidden freeze characteristic a lure disguised as a door and calls for accountability.
Justin Solar invested $75 million in World Liberty Monetary, was named a undertaking advisor, and publicly supported the corporate’s imaginative and prescient of decentralized finance for strange People. This week, he accused the corporate of secretly constructing a backdoor to freeze buyers’ cash and known as it a lure.
That is precisely how the scenario developed.
funding
In late 2024, Solar invested $30 million in WLFI. By January 2025, he had scaled to $75 million and have become an advisor. He individually dedicated $100 million to the TRUMP meme coin, bringing his whole Trump-related crypto publicity to roughly $175 million.
Token launch and switch
The WLFI token was launched on September 1, 2025 at $0.25 and reached a excessive of round $0.33. Solely 20% of pre-sale tokens had been unlocked at launch. Three days later, Solar transferred 50 million WLFI tokens to HTX. HTX, on which he serves on an advisory board, calls them check transactions.
On the identical time, HTX started providing WLFI presale buyers excessive yields for depositing and locking their newly unlocked tokens on the change.
WLFI claims
WLFI says it has recognized a sample. Retail buyers had been pegging WLFI to HTX for yield. Solar allegedly deliberate to promote tokens, together with these backing these person balances, on the backend of his change and use future vesting unlocks to replenish HTX balances later.
In layman’s phrases, he allegedly used different folks’s locked tokens as early exit liquidity for himself.
WLFI mentioned it had documented proof and froze Mr Solar’s pockets for violating the advisory settlement. The freeze contains 595 million unlocked tokens value $107 million, plus billions extra vested tokens.
Solar’s public accusation
Slightly than settle for the freeze privately, Solar issued an in depth public assertion this week that restructured all the things.
He accused WLFI of secretly embedding backdoor blacklist performance into its good contracts, giving it unilateral authority to freeze token holders’ property with out discover or purpose.
“That is the antithesis of decentralization. It’s a lure masquerading as a door,” he wrote.
WLFI fights again
World Liberty Monetary responded resolutely. They accused Justin of taking part in the sufferer and making baseless claims to distract from his personal misconduct. The corporate mentioned it has contracts and proof to assist its place and mentioned it could take the difficulty to court docket.
Solar hit again, calling on these behind WLFI accounts to come back ahead and reveal their true identities, and accusing the crew of secretly implementing backdoor controls, freezing investor funds with out due course of, and appearing with out accountability.
Associated: World Liberty defends dolomite financing as WLFI hits new lows
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