Why This Trump Family Crypto Investor Now Says It's A 'Trap'

Although success stories related to crypto investing receive a lot of attention, there are plenty of potential problems with making this risky investment. Investors may be keenly aware of big crypto scams to watch for, but they could still make a mistake and lose everything. Even when famous people endorse certain tokens, the investment isn't inherently safer. In fact, choosing the right crypto exchange and investments should involve a lot more than relying on celebrity endorsements. This fact is particularly obvious in light of the recent news that one of the biggest investors in a crypto company related to President Donald Trump's family is now accusing the company of creating a "trap door" that catches investors unaware.

Billionaire crypto investor Justin Sun, who was one of the first investors in the Trump family's crypto exchange, World Liberty Financial, in 2024 is no longer a supporter. In an X post from mid-April 2026, Sun accused World Liberty Financial of knowingly creating a function that allows the company to freeze and restrict the rights of token holders like himself. Sun wrote that this trap door allows the company to "effectively confiscate the property rights of any token holder without notice," leaving Sun unable to sell his holdings. Plus, according to Sun, World Liberty Financial never disclosed this "blacklisting" function to token holders.

The Trump family launched World Liberty Financial in 2024 during Trump's presidential campaign. It's worth noting that while President Trump has no current official position with the company since starting his second term as president, his name — and family members — are significant factors in the cryptocurrency's dealings. 

Sun allegedly held 595 million WLFI tokens, worth $107 million, as of September 2025, according to Arkham Intelligence. Despite this, immediately after World Liberty Financial began trading on public exchanges in September 2025, Sun transferred some of his tokens to other crypto wallets, which led to speculation that he was getting ready to sell. However, before this could happen Sun, as well as other investors, reported that their tokens were frozen. In fact, Etherscan reports show that 272 total wallets were blacklisted in the days after public trading began. In response to these reports, a World Liberty Financial post on X insinuated that the frozen wallets occurred as a precautionary measure due of malicious activity.

Fast forward to mid-April 2026, when World Liberty Financial announced a new proposal that would prevent early investors from trading their tokens during a newly created vesting period. This means that some early investors would have to wait until 2030 in order to trade. To add fuel to the fire, in early April 2026, CoinDesk reported that World Liberty Financial had used its tokens as collateral to borrow $75 million in stablecoins from Dolomite, a lending platform. All while continuing to block holders from selling their own tokens. With this in mind, Sun's accusation that World Liberty Financial uses its investors' money like a "personal ATM" might not be too far off.