World Liberty Financial Blacklists Justin Sun's Wallet, Freezes $550M in Tokens

World Liberty Financial's latest price was $0.1878, down 13.666% in the last 24 hours. The cryptocurrency has recently made headlines due to significant actions taken by its governing authority. World Liberty Financial (WLFI) has blacklisted a blockchain address linked to its key investor, Tron founder Justin Sun. This action, executed on Thursday, effectively freezes 595 million unlocked WLFI tokens. Blockchain records from Aarkham Intelligence confirm that at 09:18 UTC, Sun’s wallet (0x5AB) pushed an $8.89 million transfer to 0xbdF…74B0. The recipient address was blacklisted soon after, triggering red flags. In response to the development, Sun stated on X that the transfers were not for selling purposes. He described the activity as “a few generic exchange deposit tests, with very low amounts, and then created address dispersion.” He insisted the transactions did not involve “any buying or selling” and “could not possibly have any impact on the market.” The $9M transfer cost just $0.69 in gas, cheap for such high stakes. The funds originated from Sun’s Ethereum address and were routed through World Liberty Fi’s smart contract before landing at the destination now under restriction.

This transfer adds to growing skepticism around WLFI, already under watch for its controversial backers and political ties. This isn’t the first headline-grabbing move from Sun’s wallet. Over the past 72 hours, he’s shuffled assets across WLFI, USDT, and several others. His crypto portfolio, still sitting above $2.25 billion, is led by holdings in TRX, stETH, BTC, and AETHWETH. The blacklisting of a wallet connected to one of crypto’s most recognizable figures is more than a blip. It spotlights the ongoing compliance vacuum in DeFi and the risks that come with massive, opaque token flows. WLFI’s future now hinges on whether this was an isolated incident or the start of wider scrutiny. For investors and regulators alike, the real test may be what—and who—gets flagged next.

World Liberty Financial (WLFI) has blacklisted an address linked to Justin Sun, freezing about 540 million unlocked tokens and 2.4 billion locked, according to Zoomer News post on X. The move was likely triggered by transfers of 60 million WLFI tokens, worth roughly $9 million at the time, sent to exchanges, according to on-chain analytics platform Arkham. In response, Sun denied involvement, stating his address only conducted “a few small deposit tests” and splitting, with “no buying or selling involved” and no market impact. Despite those assurances, World Liberty invoked its blacklist function, freezing Sun’s WLFI holdings. The WLFI governance token, launched September 1 with Donald Trump’s endorsement, unlocked 20% of its 100 billion supply at its TGE. Justin Sun, founder of Tron, claimed 600 million WLFI worth about $200 million at launch, accounting for 3% of the unlocked pool and making him one of the project’s largest stakeholders.

By freezing over $550M of its advisor Justin Sun's assets, the WLFI project indicated that it would protect the token's value even from its most powerful insiders, turning a crisis of confidence into a price rebound. The decision followed allegations that an exchange systematically sold user deposits in a way that pressured the market. Core project leaders and several major exchanges were reportedly involved in the decision-making process. The freeze immediately tightened the circulating supply, curbing potential selling pressure and boosting the price back above $0.18. The surge provided temporary relief for investors after a bruising launch that saw insiders offload nearly 700 million tokens within hours of trading opening. World Liberty Financial debuted its token on September 1, initially priced at $0.46. Within two hours, heavy selling on Binance, OKX, and Gate drove the price down to $0.25. Early backers, who had purchased tokens in presale rounds at $0.015 and $0.05, exited with gains of up to 20 times their investment, while retail investors absorbed losses. The token’s economics have drawn criticism. Roughly 56% of the supply was controlled by insiders, while entities linked to the Trump family retained 22.5 billion tokens alongside rights to 75% of the project’s revenues. Despite being marketed as a decentralized Trump-backed initiative, critics said the structure pointed to centralization. Sun became involved earlier this year, investing $75 million and later being named an advisor. Data from Arkham Intelligence showed that he recently claimed $178 million worth of unlocked WLFI, giving him total holdings of nearly $900 million before the freeze. On-chain movements also revealed transactions between his wallets and HTX, an exchange he is associated with. These activities fueled accusations of market manipulation, though Sun rejected them. In a statement, he argued that his addresses only conducted “generic exchange deposit tests with very low amounts” and denied that any activity could have influenced WLFI’s price. Nevertheless, the blacklisting of his wallet marked a major escalation in the dispute. WLFI’s official account attempted to calm concerns, clarifying that tokens in project-controlled wallets are governed by community votes rather than the team’s discretion. The group emphasized that allocations can only be deployed through on-chain proposals approved by holders. The freeze has also raised questions about investor redemptions. Analysts noted that if HTX sold WLFI deposits while Sun’s tokens are now illiquid, users seeking to reclaim their assets may need to repurchase them on the open market. The controversy capped a turbulent opening for WLFI. Prior to launch, derivatives trading linked to the token spiked, with Coinglass reporting a 530% increase in 24-hour trading volume to $3.95 billion. Open interest surged over 60% to $931.9 million as traders speculated on the Trump-linked asset. By the time spot trading began, WLFI briefly touched a fully diluted valuation near $40 billion, placing it within the top 50 cryptocurrencies. However, sustained selling quickly drove the price down. By September 2, WLFI was trading at $0.24 with a market cap just below $7 billion. Despite the market turbulence, WLFI’s team maintains that its governance framework will allow the community to steer future decisions. World Liberty Financial burned 47 million tokens in its first week of trading, attempting to stabilize a market shaken by steep losses. On-chain data shows the tokens, equal to 0.19% of the circulating supply, were sent to a verified burn address on Wednesday. The move followed a sharp 31% drop from WLFI’s launch price of $0.33 to just over $0.23. The team has also proposed a broader buyback-and-burn program, to be funded by protocol fees and subject to a community vote.

World Liberty Financial has implemented significant blockchain restrictions targeting prominent cryptocurrency figure Justin Sun. The project's governing authority blacklisted Sun's digital wallet address following his transfer of WLFI tokens valued at approximately $9 million. This decisive action resulted in the freezing of a substantial portion of tokens associated with Sun, encompassing 595 million unlocked WLFI tokens and an additional 2.4 billion tokens designated as locked. This measure directly impacts Sun's ability to transact with these specific assets via the sanctioned address.

The emergence of World Liberty Financial (WLFI) on cryptocurrency exchanges represents a notable development in decentralized finance. Approximately 25% of the token's total supply became accessible for spot trading upon its listing. WLFI positions itself as a provider of DeFi and cryptocurrency services, utilizing its native token as a functional component within its ecosystem.

WLFI's association with former U.S. President Donald Trump has attracted considerable market and regulatory attention. The token forms part of a broader suite of cryptocurrency projects explicitly endorsed by Trump. This political connection has significant implications, with industry analysts expressing concerns that Trump's substantial reported holdings in WLFI, valued in the billions, could materially influence the trajectory of future cryptocurrency regulatory frameworks and market structure legislation in the United States.