An interesting event is unfolding in the crypto market. It has been revealed that Tron founder Justin Sun invested $190 million in cryptocurrency projects linked to Trump, suffered significant losses, and is now facing legal issues.

As far as I know, Sun poured large sums into two projects to be close to the Trump family. First, he invested $71 million in $TRUMP memecoin, but this investment is currently showing substantial losses. Additionally, he invested $75 million in Trump-supported DeFi project World Liberty Financial ((WLFI)), and these assets have now dropped to $42 million.

The real problem begins here. The WLFI team decided to blacklist and freeze Sun’s wallet. According to Sun, there is a hidden "escape hatch" in the smart contract, and a single anonymous EOA with a 3-of-5 multi-signature setup can freeze investors’ assets without any warning. This design contradicts the claim of decentralization.

While WLFI states that Sun has taken action against "malicious activities," Sun reserves all legal rights and demands the release of the frozen tokens. WLFI side has issued a "See you in court" message. An official lawsuit has not yet been filed, but there is a clear direction toward that.

This incident highlights the rising risks around Trump cryptocurrency projects. The design of smart contracts, governance legitimacy, and ownership rights are now being questioned. WLFI is currently trading at around $0.08, and this uncertainty will continue to influence the token’s price.

I believe this situation indicates that institutions like the SEC and CFTC may increase regulatory oversight of similar projects. Investors will start demanding proof of decentralization. As politically connected crypto projects proliferate, the due diligence process becomes even more critical. The situation is quite fluid and carries high risks for all parties involved.