WLFI Token Controversy: $5B Collateral Move, Withdrawal Crisis, and Justin Sun Blacklist Claim

TLDR: WLFI deposited $5B of its own token on Dolomite, borrowing $75M and sending $40M to Coinbase Prime. Dolomite’s utilization hit 100%, blocking ordinary depositors from withdrawing their stablecoins on the platform. Justin Sun alleged WLFI used a smart contract backdoor to blacklist his wallet, freezing $107M of his funds. Investor losses reached $3.87B across [...]

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