- 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 challenge advisor, and publicly supported the corporate’s imaginative and prescient of decentralized finance for extraordinary Individuals. 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 state of affairs 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 complete 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 have 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 take a look at transactions.
On the similar time, HTX started providing WLFI presale buyers excessive yields for depositing and locking their newly unlocked tokens on the alternate.
WLFI claims
WLFI says it has recognized a sample. Retail buyers have been pegging WLFI to HTX for yield. Solar allegedly deliberate to promote tokens, together with these backing these consumer balances, on the backend of his alternate and use future vesting unlocks to replenish HTX balances later.
In layman’s phrases, he allegedly used different individuals’s locked tokens as early exit liquidity for himself.
WLFI stated it had documented proof and froze Mr Solar’s pockets for violating the advisory settlement. The freeze consists of 595 million unlocked tokens price $107 million, plus billions extra vested tokens.
Solar’s public accusation
Somewhat 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 sensible contracts, giving it unilateral authority to freeze token holders’ belongings 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 stated it has contracts and proof to help its place and stated it will take the problem to court docket.
Solar hit again, calling on these behind WLFI accounts to return ahead and reveal their true identities, and accusing the crew of secretly implementing backdoor controls, freezing investor funds with out due course of, and performing with out accountability.
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