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Home News Crypto

Justin Sun Urges Trump-Linked WLFI to Unfreeze Blacklisted Tokens

5 September 2025
in Crypto
Reading Time: 3 mins read
108 1
source: bloomberg.com

source: bloomberg.com

Contents

Toggle
  • Quick Breakdown 
  • Wallet Blacklisted After $9M Transfer
  • Sun Defends Position, Cites Blockchain Principles
  • Community Split Over Motives

Quick Breakdown 

  • Justin Sun’s WLFI tokens were blacklisted after a $9M flagged transfer.
  • Sun denies selling, calling the freeze a violation of blockchain principles.
  • Analysts remain divided, with some alleging dumping and others defending him.

Wallet Blacklisted After $9M Transfer

Tron founder Justin Sun has called on World Liberty Financial (WLFI), a crypto project connected to the Trump family, to unfreeze his pre-sale token allocation after his wallets were blacklisted. Blockchain trackers Nansen and Arkham flagged a suspicious $9 million transfer from Sun’s WLFI address on Thursday, sparking speculation that he was selling his holdings.

To the World Liberty Financials team and the global community,

As one of the early major investors in World Liberty Financials, I have contributed not only capital but also my trust and support for the future of this project. My goal has always been to grow alongside the team…

— H.E. Justin Sun 👨‍🚀 (Astronaut Version) (@justinsuntron) September 5, 2025

The move led the WLFI team to block his wallet, citing concerns over potential dumping of tokens, despite Sun being one of the earliest investors in the project.

Sun Defends Position, Cites Blockchain Principles

In response, Sun described the freeze as “unreasonable” and a violation of investor rights. Writing on X, he argued that the decision undermines trust in WLFI and contradicts the core principles of blockchain.

“Tokens are sacred and inviolable,”

Sun emphasized.

“I call on the team to respect these principles, unlock my tokens, and let’s move forward together toward the success of World Liberty Financial.”

Sun also stressed that he had no plans to sell his allocation immediately, adding that his goal was to create yield opportunities through HTX and support WLFI’s ecosystem by minting $200 million worth of USD1 on Tron.

Community Split Over Motives

The blacklisting came shortly after Sun transferred WLFI tokens to the HTX exchange, with blockchain analytics firm Bubblemaps reporting he had moved $10 million worth of tokens to centralized exchanges over three days. This fueled allegations that Sun was offloading his holdings despite earlier assurances.

Critics, including weRate co-founder Quinten François, accused Sun of misleading investors by locking in deposits at high yields while selling his own tokens. However, others defended him, with Nansen co-founder Alex Svanevik stating that timestamp analysis showed Sun had not sold his allocation.

The controversy now leaves WLFI in a delicate position, balancing investor protection against maintaining confidence in its commitment to decentralization. The WLFI token launched on major exchanges on September 2 with $1B traded in the first hour. 

 

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