World Liberty Financial co-founder Zak Folkman has defended the transparency of the company's smart contracts following a lawsuit filed by Tron founder Justin Sun. Sun alleges that the WLFI token's smart contract contained a hidden blacklisting function used to freeze $107 million in tokens in his wallet. Folkman argues that all functions were visible on-chain, emphasizing the transparency inherent in blockchain technology. Sun, who invested $45 million in WLFI tokens and served as an advisor, claims the blacklisting function was misused, leading to his lawsuit for fraud and breach of contract. World Liberty Financial, associated with the Trump family, maintains that the function was intended for compliance purposes. The case raises broader questions about investor awareness and the communication of smart contract capabilities.