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Justin Sun Alleges Trump-Backed USD1 Stablecoin Has Hidden Wallet-Draining Powers
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Justin Sun Alleges Trump-Backed USD1 Stablecoin Has Hidden Wallet-Draining Powers

Tron founder Justin Sun claims World Liberty Financial's $4 billion USD1 stablecoin runs on-chain code that differs from its published GitHub source, allegedly

August 23, 2026Source: cryptoslate.com

Justin Sun escalated his public dispute with Donald Trump-backed World Liberty Financial on Friday, accusing its USD1 stablecoin of carrying administrative powers that allow privileged operators to move funds from frozen wallets without holder consent.

On Aug. 21, the Tron founder alleged that World Liberty's published source code does not match the contract currently running on-chain, arguing that the discrepancy amounts to evidence of deceptive deployment. He compared the situation to techniques used in rug pulls.

Sun said the live USD1 implementation can drain or reallocate balances after an address has been frozen, meaning that cold storage or multisignature custody would not prevent intervention by those controlling the contract's administrative functions.

Key claims from Sun

  • USD1's on-chain contract allegedly differs from the code published on World Liberty's GitHub repository.
  • The discrepancy is characterized as evidence of deceptive deployment, likened to rug-pull tactics.
  • Privileged operators can reportedly move funds from wallets even after they have been frozen.
  • Cold storage and multisignature custody would not block this administrative intervention, according to Sun.

USD1 is a stablecoin tied to World Liberty Financial, a project backed by Donald Trump, and has a reported market value of $4 billion.

Source: CryptoSlate

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