WLFI Token Plummets 18% After Controversial Governance Vote Sparks Fraud Allegations

World Liberty Financial’s (WLFI) token price plummeted 18% after the Trump-linked firm successfully passed a controversial governance vote to lock early supporter tokens for two years. The vote, which concluded in just 15 minutes, has since drawn sharp criticism and accusations of being rigged.

The proposal passed with 6.6 billion WLFI tokens in favor, while only 3.3 million WLFI tokens were attributed to “No” votes. The largest single “No” voter held 569,900 WLFI tokens, while the top four “Yes” voters collectively controlled 2.5 billion WLFI tokens—nearly 40% of the entire vote.

Observers highlighted several irregularities:

• The vote achieved 1.5 billion votes and passed with a 148% quorum within 15 minutes, beating its May 6 deadline.
• The proposal exceeded the required vote threshold by 657%.
• WLFI reportedly coerced voters by threatening those who opposed the measure with indefinite token locking and restricted governance participation.

The proposal will lock 17 billion early supporter WLFI tokens for two years, followed by a two-year linear vesting period. This means some early investors may face a four-year wait before their tokens are fully unlocked.

Backlash and Accusations of a ‘Scam’

Reactions to the vote have been overwhelmingly negative. In WLFI’s official forum, users expressed a mix of support and outrage over the two-year locking and vesting schedule. Many labeled the project a “scammer”, with similar sentiments echoed across social media platform X.

“Proposal: agree with our absurd plan or lose your tokens forever.”
— rtx (Marco) (@thatrtx), April 29, 2026

Critics mocked the vote’s democratic claims, suggesting the outcome was predetermined. One user sarcastically referred to the process as “community governance”, highlighting the perceived lack of fairness.

Legal Fallout and Criminal Links

WLFI’s governance troubles have escalated into legal disputes. Former major supporter Justin Sun, CEO of Tron, has filed a lawsuit against the firm, accusing it of blacklisting his tokens. Sun stated:

“This proposal is bad for the community, but because World Liberty has frozen my early investor tokens, I cannot vote them for or against the proposal.”

He also expressed concerns that WLFI may burn his tokens. Beyond investor backlash, WLFI has faced additional scrutiny for its ties to a Southeast Asian criminal syndicate.

Last year, WLFI partnered with crypto firm AB, which was developing a blockchain-themed resort in East Timor led by two sanctioned individuals. In October 2025, the U.S. sanctioned Yang Jian (controlling shareholder) and Yang Yanming (General Manager) as part of a crackdown on a billion-dollar overseas crypto scam industry.