A Crypto King Betrayed by the Decentralization He Believed In

Justin Sun, the billionaire founder of the Tron blockchain, has found himself at odds with the Trump family's crypto initiative, World Liberty Financial (WLFI). On September 4, 2025, Sun's cryptocurrency address was blacklisted by the project, effectively freezing over $100 million in WLFI tokens. The action reportedly followed several outbound transactions from his address, including a $9 million transfer of WLFI tokens. Sun, who had been a major investor and early supporter of the Trump-linked project, stated in a post on X that the transactions did not involve any buying or selling and thus could not have impacted the market. His comments were translated from Chinese and emphasized his belief in the principles of fairness and transparency in decentralized finance [5].

Sun’s involvement with WLFI began in late 2024, when he invested $30 million in the project, which had struggled to gain traction prior to his backing. By mid-2025, his total investment had increased to $75 million, making him one of the largest holders of the token. WLFI, a governance token for a decentralized finance platform, is meant to empower users by allowing them to influence strategic decisions. However, the project has been criticized for retaining significant centralized control, with the Trump family and their associates maintaining key decision-making power. Sun’s public support for the Trump family, including his appearance at a Trump-hosted event for top holders of the president’s memecoin, drew both praise and scrutiny [1].

The blacklisting of Sun’s address has raised questions about the governance model of WLFI. According to blockchain analytics firm Arkham Intelligence, World Liberty Financial has blacklisted over 200 wallets since the token’s launch, a move that has been likened to the “debanking” tactics that reportedly led the Trump family to embrace blockchain technology in the first place. The freeze on Sun’s assets has also coincided with a sharp decline in WLFI’s price, which has dropped by over 40% since its trading debut on September 1. Whale investors have reported significant losses, with one investor losing over $1.6 million on a 3x leveraged position [3]. Despite a token burn intended to reduce supply and boost value, the price continued to fall, raising concerns about the token’s long-term viability.

World Liberty Financial has not responded to requests for comment on the situation, leaving the public and investors in the dark about the rationale behind the blacklisting. In a statement posted to its social media account, the project claimed it does not seek to blacklist anyone but must act when alerted to “malicious or high-risk activity.” This explanation has done little to quell concerns, with critics pointing to the contradiction between the project’s promotion of decentralization and its use of centralized control mechanisms [2]. Alex Thorn, a researcher at Galaxy Digital, noted that the incident could test the project’s narrative of promoting freedom and community governance.

The broader crypto community is closely watching how this dispute unfolds, as it highlights the tensions between decentralization and the practical realities of centralized control in blockchain projects. While WLFI presents itself as a decentralized finance initiative, the ability of the project’s leadership to freeze assets and restrict transfers suggests a more traditional, centralized approach to governance. This contradiction has sparked debate about whether projects like WLFI can truly deliver on the promises of decentralization, or whether they are merely leveraging the appeal of blockchain technology while maintaining traditional power structures [2].

Source: [1] Billionaire Justin Sun begs Trump-backed World Liberty ... (https://fortune.com/crypto/2025/09/05/justin-sun-donald-trump-world-liberty-financial-blacklisted-crypto-address-wlfi/) [2] Trump family crypto project breaks with key billionaire partner (https://www.axios.com/2025/09/05/trump-justin-sun-world-liberty-financial) [3] Whales lose millions on Trump-linked WLFI amid 40% dip. ... (https://cointelegraph.com/news/whales-lose-millions-on-trump-linked-wlfi-s-40-dip-despite-47m-burn) [5] 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)