Justin Sun says USD1 can move funds without user approval

Justin Sun, founder of Tron (TRX), said World Liberty Financial’s stablecoin USD1 has sweeping admin privileges that allow tokens to be transferred to another wallet without user consent. Sun said the most serious issue is that the permission structure could let operators move USD1 from specific accounts to their own wallets or to third-party wallets without approval. Sun added that neither cold wallets nor multisignature wallets could block such transfers, making it the biggest concern surrounding USD1. Sun also said the function was implemented without approval from WLFI holders and amounted to a self-added backdoor. According to Sun, the USD1 source code published on World Liberty’s official GitHub differs from the code running on the live USD1 system, and the issue had already surfaced before the WLFI token launch, with WLFI’s backdoor function added later.