Justin Sun Just Called Trump's Crypto Project a "Personal ATM" After It Borrowed $75 Million Against Its Own Token
Summary:
- World Liberty Financial (WLFI), a Trump-family crypto venture, borrowed $75 million by putting up 5 billion of its own tokens on DeFi lender Dolomite.
- The loan maxed out the pool, locking out regular users from getting their money back.
- Justin Sun, once WLFI's biggest backer, publicly broke with the project and says he lost $70 million.
A rich backer, a Trump-family crypto project, and a $75 million loan that locked out regular users. It's messy.
World Liberty Financial put 5 billion of its own WLFI tokens into Dolomite - a DeFi lending app - and took out $75 million. More than $40 million went straight to Coinbase Prime.
The problem: the loan drained the whole pool. Regular users who had money in Dolomite couldn't take it out.
The Conflict
Dolomite co-founder Corey Caplan also works with WLFI. So the project took a loan from a platform run by one of its own people - and that loan kept other users from pulling cash out.
The Break-Up
Justin Sun was once WLFI's biggest outside backer. Now he's calling it a "personal ATM."
Sun says his WLFI wallet was frozen in 2025. He claims the project ran votes that were "neither fair nor clear." He says he lost $70 million. WLFI fired back by saying it would take Sun to court.
What to Watch
DeFi runs on trust - users put money in and expect they can get it back. When a project drains the pool with its own token, that trust breaks. Whether the law steps in - or this stays in crypto court - will show where DeFi rules are headed.
