World Liberty Financial sinks to record low on news of undisclosed 5.9 billion token sales to private investors
World Liberty Financial's WLFI token plummeted to a record low after it was revealed that 5.9 billion tokens were secretly sold to private investors without clear disclosure to existing holders. The sales, which generated hundreds of millions, have sparked backlash over governance issues, liquidity restrictions for early investors, and alleged hidden controls in the smart contract. Justin Sun has filed a lawsuit over a purported blacklist feature that could freeze user assets, while on-chain data shows concentrated voting power among insiders during key governance decisions.
- ▪5.9 billion WLFI tokens were secretly sold to private accredited investors after public rounds raised over $550 million.
- ▪75% of net proceeds go to DT Marks DEFI LLC, linked to Trump and his family, which holds 22.5 billion WLFI tokens.
- ▪WLFI dropped below $0.056, hitting an all-time low, amid governance concerns and a lawsuit from Justin Sun over a blacklist feature.
- ▪A governance vote allowing 62 billion tokens to unlock was influenced by just four wallets controlling 40% of voting power.
- ▪Early investors face strict lockups, while founders must burn 10% of their allocation to align with new vesting terms.
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<img src="https://static.cryptobriefing.com/wp-content/uploads/2026/05/01095725/b7feecd5-7bdc-4c5b-9ac1-49f9cb64a52d-800x420.jpg" alt="World Liberty Financial sinks to record low on news of undisclosed 5.9 billion token sales to private investors" class="w-full aspect-[19/10] object-cover" /> World Liberty Financial sinks to record low on news of undisclosed 5.9 billion token sales to private investors Secret token sales spark controversy and face investor backlash amid governance and liquidity concerns. Share Add us on Google by Vivian Nguyen May.
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