World Liberty Financial's Price Surges 19.872% Amid Token Freeze Controversy

World Liberty Financial's latest price was $0.2169, up 19.872% in the last 24 hours. World Liberty Financial (WLFI) has recently taken significant actions to address compliance and security concerns, which have sparked debates and raised questions about governance and transparency in the decentralized finance (DeFi) space. The company froze tokens belonging to several investors, including major backer Justin Sun, citing compliance and suspicious activity flags. This decision has led to widespread market turmoil and decentralization concerns, as it highlights the significant debate over token governance and has sharply decreased WLFI's market value.

Justin Sun, founder of Tron, has publicly denied selling unlocked WLFI tokens, asserting that his transactions were harmless wallet deposit tests. He has committed to significant WLFI purchases, emphasizing that no buying or selling was involved in his transactions. WLFI responded by asserting that the freeze is to protect users against suspicious activity. The incident has raised concerns around governance and transparency in DeFi, affecting WLFI's market performance and investor confidence.

As a result of the token freeze, WLFI's price fell, triggering wider market distrust. Concerns over centralized token controls prompted intense debates, highlighting issues within crypto governance frameworks. Financial implications for WLFI include potential reassessment by investors and scrutiny on Sun's continued involvement. Sun further pledged $20 million towards new token acquisitions, aiming to reaffirm market confidence. Regulatory authorities have not directly intervened, but the event spotlights governance concerns in decentralized finance. The lack of transparent control over token management underscores vulnerability in emerging DeFi protocols.

WLFI confirmed that 272 wallet addresses were blocked in recent days to address security threats and protect users. The organization said the action was based strictly on on-chain security indicators, not trading behavior. Officials explained that the intervention was necessary after several reports of phishing and compromised accounts surfaced through a thread on X. Of the 272 wallets restricted, 215 were connected to a coordinated phishing campaign. WLFI said those addresses were preemptively stopped to prevent further unauthorized withdrawals. Another 50 addresses were blocked after owners reported account compromises through official support channels. WLFI stated these restrictions were requested by the affected users themselves. Five additional addresses were placed under review because they were flagged for high-risk exposure. One wallet was frozen due to an internal investigation into suspected misappropriation of user funds. WLFI said conclusions on these cases would be communicated publicly once reviews are complete.

Officials stressed that blacklisting is not standard practice and occurs only in response to malicious or high-risk activity. The group emphasized that normal market participation is not subject to restrictions. WLFI said investigations focus on blockchain security signals and avoid targeting individuals for their trading decisions. A statement clarified that the intervention covered only a small fraction of total holders. The organization noted that rightful owners of compromised wallets would be assisted in securing assets and verifying control. WLFI urged any users affected by phishing attempts or suspicious activity to report cases through its help center. Officials requested detailed information, including transaction hashes, screenshots, and wallet addresses, to support investigations. Users were also advised to avoid unofficial links or direct messages impersonating company accounts. The group is committed to updating the community once the investigations are finalized. Outcomes for each category of blacklisted addresses will be shared publicly. WLFI added that ongoing reviews remain centered on preventing harm and securing assets. Officials stated the organization remains focused on preserving market integrity while completing pending investigations. A follow-up announcement will provide details on the status of flagged addresses and recovery efforts. WLFI also reminded users that privacy is protected throughout the process, as reviews rely on verifiable on-chain behavior. The recent measures marked one of the largest targeted blacklisting actions by WLFI in recent months. Officials closed by stating operations continue as normal, with pending collaborations and announcements unaffected by the security reviews.

World Liberty Financial (WLFI), a crypto project linked to U.S. President Donald Trump’s family, is under scrutiny after two high-profile investors alleged their token holdings were frozen. Polygon developer Bruno Skvorc said on X that WLFI flagged his wallet as “high risk” and refused to unlock his allocation. He accused the project of “stealing” funds, describing it as a “new age mafia.” Skvorc said he was one of six investors subjected to full lockups from the start. The freeze, he added, was justified by WLFI compliance tools citing indirect links to sanctioned entities, past Tornado Cash use, and flagged dashboards — issues that onchain analysts argue often reflect false positives. Blockchain sleuth ZachXBT said automated compliance systems frequently label wallets “high risk” due to unrelated or distant transactions. The controversy escalated when Justin Sun, founder of Tron and one of WLFI’s biggest backers, revealed his allocation had also been frozen. Sun, who invested at least $75 million into WLFI, said his wallet was blacklisted after a $9 million transaction was flagged. In a post on X, he called the freeze “unreasonable” and against blockchain’s core principles, urging WLFI to unlock his funds. Blockchain data reviewed by Nansen showed WLFI’s “guardian address” blacklisted Sun’s wallet containing about 545 million tokens. Before the freeze, he transferred 50 million tokens to another address. WLFI had previously promised early investors could sell up to 20% of their holdings, but Sun’s case suggests restrictions go further. Despite the dispute, Sun signaled plans to double down, pledging to buy another $10 million of WLFI tokens and invest $10 million in a related U.S.-listed vehicle. His firm, Tron, said discussions with WLFI remain ongoing. WLFI’s governance has drawn controversy given the . at industry events in Dubai and Hong Kong, with both men promoting WLFI and related crypto ventures. The Trump family’s share of token sales is reported to have generated hundreds of millions in gains, fueling criticism of conflicts of interest given the administration’s oversight of U.S. regulators. For investors, the episode raises concerns about project credibility and the risks of discretionary compliance decisions in token economies. Critics argue that freezing wallets without due process undermines decentralization and investor trust, especially when linked to politically sensitive projects. WLFI acknowledged community concerns about wallet blacklisting but insisted it only responds to “malicious or high-risk activity.” The company did not mention Sun or Skvorc by name. With two high-profile investors publicly disputing its practices, WLFI faces a test of credibility. How it resolves disputes with Sun and Skvorc may influence whether other backers stay engaged. More broadly, the situation underscores the tension between compliance tools, project governance, and investor expectations in politically charged crypto ventures. A crypto developer has accused World Liberty Financial (WLFI), a crypto project with ties to US President Donald Trump, of stealing his funds by refusing to unlock his tokens. In a Saturday post on X, Polygon DevRel Bruno Skvorc shared an email from WLFI’s compliance team, which flagged his wallet address as “high risk” due to blockchain exposure. The team said his tokens would not be released. “TLDR is, they stole my money,” Skvorc wrote. “And because it’s the @POTUS [The president of the United States] family, I can’t do anything about it. This is the new age mafia. There is no one to complain to, no one to argue with, no one to sue.” In response to another user, Skvorc claimed that he is one of six investors who were subject to 100% token lockups from the beginning. “It was not ‘high risk’ to accept money from this address, but it is high risk to unlock owed money into it,” he wrote. The incident sparked criticism of the compliance tools used by projects like WLFI. Onchain sleuth ZachXBT chimed in, explaining that automated tools often flag addresses as “high risk” for trivial or incorrect reasons, including interacting with DeFi contracts or exchanges. “I helped a team manually review addresses for a presale because popular compliance tools labeled them high risk due to unrelated activity several hops away,” ZachXBT said. “These tools are deeply flawed.” In Skvorc’s case, the flags were traced to a past transaction via crypto mixer Tornado Cash, indirect links to sanctioned entities like Garantex and Netex24, and a previous interaction with a now-blacklisted dashboard. Based in Croatia, Skvorc is a blockchain developer who worked on Ethereum 2.0. He is also the founder of RMRK, a company integrating multi-resource NFTs into gaming metaverses. On Friday, Tron founder Justin Sun also revealed that his WLFI token allocation has been frozen. His wallet was blacklisted after blockchain trackers flagged a $9 million transaction, triggering accusations that he had started selling. In a post on X, Sun called the freeze “unreasonable” and urged World Liberty Financial to unlock his tokens. He said the decision went against the core values of blockchain and called tokens “sacred and inviolable.”

Recent developments surrounding World Liberty Financial (WLFI), the decentralized finance project co-founded by the Trump family, have centered on operational decisions and a significant dispute with a major investor. The project has reportedly undergone aggressive expansion since its founding. Late 2024 saw crypto figure Justin Sun credited with reviving interest in WLFI following its launch.

A major operational move occurred when World Liberty Financial blacklisted a substantial number of crypto wallets linked to its WLFI token. The project disclosed that 272 wallets were subjected to this action, asserting the decision was solely implemented to protect token holders from an identified phishing threat. The company maintained the blacklisting was a necessary security protocol to safeguard its community.

This decision, however, led to public criticism from billionaire investor Justin Sun, who is confirmed to be one of the project's backers. Sun publicly contested the move, specifically objecting to the blacklisting of his wallets. His public statements highlighted a growing friction between the investor and the Trump-linked venture, casting a shadow within the cryptocurrency community and prompting questions about governance and investor relations.

World Liberty Financial defended its security protocols in the wake of Sun's remarks, standing by the wallet freeze as a protective measure for token holders. The dispute between Sun and the WLFI project has become a notable point of discussion, generating commentary on the implications for stakeholders involved with politically connected crypto initiatives.