Blockchain Titan Demands Token Freedoms After $107M Freeze

Justin Sun, founder of the Tron blockchain ecosystem and a major investor in World Liberty Financial (WLFI), has called for the platform to unfreeze his token allocation, which was recently blacklisted following a series of suspicious transactions flagged by blockchain analytics firms. The WLFI platform, which has been linked to the Trump family, blacklisted Sun’s address on September 4, impacting approximately 595 million WLFI tokens valued at around $107 million at current prices, according to Arkham data [2].

The blacklisting came after Sun moved $9 million worth of WLFI tokens to HTX, a major cryptocurrency exchange, over the course of three days, as reported by analytics firm Bubblemaps [1]. Sun responded to the move via X, stating that the transactions were “unreasonably frozen” and that they did not involve any selling or market manipulation. He emphasized that his pre-sale tokens were part of a long-term investment strategy and should be treated in line with the principles of decentralized blockchain technology [1].

Sun highlighted that the blacklisting not only violated investor rights but also risked damaging broader confidence in the WLFI platform. He urged the team to “respect these principles, unlock my tokens, and let’s move forward together toward the success of World Liberty Financials.” Sun reiterated that tokens should be considered sacred and inviolable, aligning with what he described as the fundamental value of blockchain over traditional finance [1].

WLFI’s token price has taken a hit following the incident. The token has fallen 20% in the last 24 hours and is down 42% since its trading debut on September 1. This decline has raised concerns among investors, particularly given Sun’s early and substantial investment in the project. According to reports, Sun initially invested $30 million in WLFI in late 2024 and by mid-2025, his total investment had grown to approximately $75 million. At the time of WLFI’s market launch, Sun was reported to hold nearly $700 million worth of tokens, with a significant portion still vesting-locked [2].

Responses from the crypto community have varied. Some analysts, such as Quinten François, have suggested that Sun may have been attempting to manipulate the market by luring users with high yield offers while secretly liquidating his position. Others, including Alex Svanevik of Nansen, have defended Sun, noting that an AI analysis of the transaction timestamps indicated he did not sell his allocation [1]. Despite these conflicting views, the incident has sparked a broader debate about governance and fairness in decentralized finance platforms.

World Liberty Financial has not yet provided a public explanation for the blacklisting. Representatives for both Sun and WLFI have not responded to requests for comment from major crypto news outlets. The incident highlights the challenges of managing trust and transparency in crypto projects, especially those with high-profile affiliations.

Source: [1] Justin Sun Urges Trump's WLFI to unlock “unreasonably” ... (https://cointelegraph.com/news/justin-sun-trump-wlfi-unlock-frozen-token) [2] World Liberty Financial Blacklists Justin Sun's Address ... (https://www.coindesk.com/tech/2025/09/04/world-liberty-financial-blacklists-justin-sun-s-address-with-usd107m-wlfi)