Sun Challenges WLFI's Power Grab Over Frozen Tokens

Justin Sun, co-founder of Tron, has publicly called on the team behind World Liberty Financial (WLFI)—a decentralized finance platform linked to the Trump family—to unlock a portion of his token allocation that was recently frozen. In a post on X, Sun described the blacklisting of his wallet as “unreasonable” and a violation of the core principles of decentralized blockchain technology. He emphasized that tokens should be “sacred and inviolable” and that such actions risk damaging broader confidence in the platform.

The freeze occurred after blockchain tracking platforms, including Nansen and Arkham, flagged a $9 million transfer from Sun’s wallet, raising concerns about potential dumping. In response, Sun stated that he had no intention of selling his tokens and has instead been generating yield for WLFI deposits on HTX. According to data from Bubblemaps, Sun moved approximately $10 million worth of WLFI tokens to centralized exchanges over the past three days, sparking speculation about his true intent.

World Liberty Financial has yet to confirm who exactly initiated the blacklisting or how many tokens were affected. In a statement on X, the platform acknowledged “community concerns” about wallet blacklists but did not name Sun or provide further details. The company emphasized that it only acts in response to malicious or high-risk activity that could harm its users. A spokesperson for Sun’s crypto firm, Tron, confirmed that Sun and the WLFI team are in ongoing communication about the matter.

Sun, one of WLFI’s largest early investors, initially pledged $30 million to the project and later claimed his total investment reached $75 million. As an adviser to WLFI, he has actively promoted the project, including its stablecoin USD1, on his platforms. His public criticism highlights the tension between centralized governance and the decentralized ethos of blockchain, particularly when major stakeholders are involved. Analysts have debated whether Sun’s actions were opportunistic or aligned with his stated long-term investment strategy.

Meanwhile, WLFI’s token has seen a sharp decline since its public trading debut, dropping from $0.46 to $0.17 in just three days. This sharp drop has drawn comparisons to the earlier collapse of the TRUMP memecoin. On-chain data suggests that some early investors, who purchased tokens at $0.005, are now offloading large volumes of WLFI, raising further concerns about the token’s stability and governance model.

Source: [1] Justin Sun urges Trump's WLFI to unlock “unreasonably” ... (https://cointelegraph.com/news/justin-sun-trump-wlfi-unlock-frozen-token) [2] Trump crypto backer Justin Sun says his World Liberty tokens ... (https://finance.yahoo.com/news/trump-crypto-backer-justin-sun-115138629.html) [3] Justin Sun Battles Trump's World Liberty Financial After ... (https://coinpedia.org/crypto-live-news/justin-sun-battles-trumps-world-liberty-financial-after-token-freeze/) [4] Justin Sun Battles Trump's World Liberty Financial After ... (https://www.mexc.co/en-IN/news/justin-sun-battles-trumps-world-liberty-financial-after-token-freeze/85873) [5] WLFI Token Collapse: Is This DeFi Token Repeating ... (https://www.fxempire.com/forecasts/article/wlfi-token-collapse-is-this-defi-token-repeating-trumps-90-crash-playbook-1546093)