NEWS / Crypto

Justin Sun Just Called Trump's Crypto Project a "Personal ATM" After It Borrowed $75 Million Against Its Own Token

Published Apr 12, 2026

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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.

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