Sun’s $20M Bet: Can Trust Be Restored in a Frozen Crypto Empire?

Generated by AI AgentCoin World
Monday, Sep 8, 2025 8:51 am ET2min read
TRUMP
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Aime RobotAime Summary

- Justin Sun, WLF's major investor, pledged $20M to stabilize the project after 595M WLFI tokens ($107M) were frozen by the guardian address.

- Sun criticized unilateral token freezes as violating investor rights, highlighting governance flaws in WLFI's non-equity token model.

- WLFI's 42% price drop since launch and centralized control sparked crypto community backlash, with critics labeling it a "scam" and "mafia-like" operation.

- Trump family's financial stake in WLF intensified scrutiny over conflicts of interest amid SEC regulatory challenges and governance controversies.

- WLF defended freezes as security measures against phishing attacks but faces reputational risks despite claiming to protect user assets.

Justin

Sun
, the Chinese cryptocurrency entrepreneur and key investor in World Liberty Financial (WLF), has pledged an additional $20 million to stabilize the project amid the freezing of his tokens. Sun has been one of the largest investors in WLF, initially investing $30 million in late 2024 and increasing it to $75 million by mid-2025 [1]. His tokens, however, were blacklisted by the project’s guardian address, affecting 595 million WLFI tokens worth approximately $107 million at current prices [2]. The blacklisting occurred following several outbound transactions from Sun’s address, including a $9 million transfer, which Sun stated was not related to buying or selling [2].

In response, Sun called for the WLFI team to unlock his tokens, emphasizing the need for fairness, transparency, and trust in building a credible financial brand. He stated that such unilateral actions not only violate investor rights but also risk damaging broader confidence in the project [2]. The move has drawn attention to the governance structure of WLFI, a governance token that does not confer equity in the company but is used to gradually decentralize control [3]. The freezing of tokens has raised concerns over the centralization of authority within the project and the control rights it maintains over investors.

WLFI has experienced significant volatility since its trading debut on September 1, with the token down 42% since its launch and dropping 20% in the last 24 hours [2]. The token's initial price was above $0.30, but it has since fallen to around $0.19 [2]. The decline in value has been attributed to increased supply from early investors and the broader market dynamics. Sun, who had previously indicated no intention to sell his unlocked tokens, has now allocated $10 million to buy more WLFI and an additional $10 million in a publicly traded U.S. stock that invests in WLFI [1]. This commitment signals his confidence in the project’s long-term potential and his willingness to support its stability despite recent challenges.

The controversy surrounding the freezing of tokens has also drawn criticism from the broader crypto community. Bruno Skvorc, a Polygon developer and WLF investor, likened the project to "the scam of all scams," accusing it of stealing funds and functioning like "the new age mafia" [4]. Skvorc highlighted the lack of recourse for investors and the centralized control that WLF exercises over user assets. The firm has defended its actions, stating that it intervenes to protect users and prevent harm while investigating and assisting impacted users [4]. WLF reported that 79% of the blacklisted wallets were linked to phishing attacks, and the firm is working with the rightful owners to secure their assets [4].

The

Trump
family’s involvement in WLF has also brought the project into the spotlight, raising concerns about potential conflicts of interest given the Trump family's significant financial stake in the venture [1]. The project's ties to the Trump family and the recent regulatory challenges faced by the SEC under the Trump administration have further complicated its public perception. Despite the criticisms, WLF has maintained that its actions are necessary to ensure the security and integrity of the platform, although the reputational risks associated with blacklisting user wallets remain a concern [4].

Source:

[1] Top Trump crypto backer Justin Sun says his World Liberty Financial tokens unreasonably frozen (https://www.reuters.com/business/finance/top-trump-crypto-backer-justin-sun-says-his-world-liberty-tokens-unreasonably-2025-09-05/)

[2] World Liberty Financial blacklists Justin Sun's address with USD107m WLFI (https://www.coindesk.com/tech/2025/09/04/world-liberty-financial-blacklists-justin-sun-s-address-with-usd107m-wlfi)

[3] Trump family crypto project breaks with key billionaire partner (https://www.axios.com/2025/09/05/trump-justin-sun-world-liberty-financial)

[4] Polygon developer calls World Liberty Financial the 'scam of all scams' (https://cryptoslate.com/polygon-developer-calls-world-liberty-financial-the-scam-of-all-scams/)