Donald Trump's supported stablecoin USD1 has sparked controversy due to Justin Sun's allegations that there are discrepancies between the project's public code and on-chain contracts. A technical review pointed out that the public code repository of World Liberty Financial lacks certain management functionalities. The review revealed that the current implementation of USD1 includes mechanisms that allow the complete balance of frozen addresses to be transferred to the contract owner, or portions of the balance to be redistributed to other addresses, actions that do not rely on the authorization of the affected holders. Existing materials indicate that these functionalities are limited to privileged permissions and apply to frozen balances, failing to support claims of unrestricted access to any wallet, nor proving the fraud alleged by Sun. The differences between the deployed contract and the public code repository are the most technically sensitive points. GitHub showcases functionalities such as minting, burning, freezing, and pausing, but does not display the draining, redistribution, or V2 initialization processes in active implementations. World Liberty Financial is seeking final approval from a national trust bank, which will replace BitGo in managing the issuance, redemption, and reserve management of USD1. The OCC has granted preliminary conditional approval, but pre-opening requirements still need to be met. The supply of USD1 has also decreased, with DeFiLlama data showing a drop from over $5.3 billion in February to $4 billion, a decline of over $1.3 billion, a trend that began before the new allegations emerged.
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