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Justin Sun's wallets were frozen by WLFI, blocking access to $500 million worth of tokens. Sun denied manipulation, while blockchain firm Nansen traced WLFI's sharpest sell-off to other flows. Sun invested $75 million in WLFI and held close ties with Trump. WLFI's parent company has heavy insider concentration, with Trump's family controlling 60% and retaining 22.5 billion tokens. Users are divided, with some citing Sun's history of manipulation and others calling the freeze hypocritical. WLFI's decentralization claims are in doubt.

Justin Sun's wallets were frozen by World Liberty Financial (WLFI), blocking access to $500 million worth of tokens. The move, which occurred on Thursday, was sparked by suspicious transactions flagged by blockchain trackers like Nansen and Arkham. The blacklisting led to accusations of selling, which Sun has denied [1].

Sun, the founder of Tron, was among the first investors to join the WLFI pre-sale. He expressed his frustration with the decision to freeze his tokens, stating that it was "unreasonably frozen" and violated investor rights. Sun called on the WLFI team to respect decentralized blockchain principles and unlock his investment [1].

The blacklisting occurred shortly after Sun started moving WLFI tokens to the HTX cryptocurrency exchange. On Friday, Bubblemaps reported that Sun had moved $9 million of his still-unlocked WLFI tokens to HTX, in addition to $10 million sent to other exchanges over the past three days [1].

Sun's actions have sparked debate among crypto analysts. While some, like Quinten François, suggest that Sun might have been selling his allocation, others, including Nansen founder Alex Svanevik, contend that Sun has not been selling his tokens [1].

WLFI's parent company has heavy insider concentration, with the Trump family controlling 60% and retaining 22.5 billion tokens. Sun's investment in WLFI amounts to $75 million, and he holds close ties with the Trump family [1].

The freeze has raised questions about WLFI's decentralization claims. Some users have cited Sun's history of manipulation, while others see the freeze as hypocritical given WLFI's own centralized structure [1].

References:

[1] https://cointelegraph.com/news/justin-sun-trump-wlfi-unlock-frozen-token
[2] https://www.lookonchain.com/feeds/27901