WLFI's value plummeted to an unprecedented low of $0.07714, following a significant loss of over $700 million in market capitalization within a week. According to NS3.AI, the downturn coincided with allegations from Justin Sun, who accused World Liberty Financial of employing blacklist controls to freeze his wallet. Additionally, concerns have been raised over a $150 million stablecoin borrowing loop, which is reportedly backed by approximately 5 billion WLFI on Dolomite.
World Liberty Financial has refuted Sun's allegations and has threatened legal action in response. The company has also taken steps to address its financial obligations by repaying $25 million of its stablecoin debt. Furthermore, it announced plans to propose a governance initiative aimed at implementing a phased token unlock for early retail investors.