Sun Vows Innocence as WLFI Plummets Amid Trump-Backed Drama

Justin Sun, founder of TRON and owner of major cryptocurrency exchanges such as Poloniex and HTX, recently made headlines after retweeting a post from Nansen CEO supporting himself, with the comment "I am innocent." This public declaration came amid a period of intense scrutiny following a series of on-chain activities involving the governance token WLFI, which is tied to the DeFi project World Liberty Financial—a platform backed by former U.S. President Donald Trump and his sons.

World Liberty Financial announced on September 1 the Token Generation Event (TGE) of its native token WLFI, unlocking 20% of the 100 billion tokens. Justin Sun, one of the largest holders of WLFI, claimed 600 million tokens during the event, valued at approximately $200 million at the time. This allocation constitutes 3% of the 20 billion unlocked tokens, solidifying Sun’s position as a major stakeholder in the project. According to Arkham Intelligence, Sun has pledged not to sell the unlocked tokens and has stated he is “fully aligned with the mission” of World Liberty Financial, citing its “too powerful long-term vision” as a key reason for his commitment [4].

Despite Sun’s public support and non-sale pledge, the market reacted with volatility. On-chain data revealed that shortly after Sun moved $9 million worth of WLFI tokens, the price dropped by approximately 24% within hours. Sun responded to the market reaction by stating that his address had only conducted “a few generic exchange deposit tests” with minimal amounts and that there was “no buying or selling” involved, suggesting that the movement of tokens could not have significantly impacted the market [1].

In response to the price decline, World Liberty Financial announced the burn of 47 million tokens as part of efforts to stabilize the market. The token’s DEX activity saw a peak on Uniswap but quickly slowed to under $500K in daily volumes. Meanwhile, HTX, a crypto exchange acquired by Sun in 2022, launched a Flexible Earn limited yield plan offering 20% annualized returns on WLFI deposits, indicating potential use of the tokens as collateral rather than for direct sales [2].

Justin Sun’s broader crypto portfolio includes $2.9 billion in on-chain assets, with his WLFI tokens being the largest holding. He also holds TRX tokens worth $687 million and STETH valued at $478 million. In addition to his WLFI holdings, Sun has committed to increasing the circulation of USD1, a stablecoin pegged to the U.S. dollar, by $200 million on the Tron blockchain. USD1 is a key component of World Liberty Financial’s ecosystem, alongside WLFI, and supports the platform’s future lending, borrowing, and exchange functionalities [3].

As of the time of reporting, WLFI traded at $0.2453 per token with a market capitalization of $6.05 billion and a fully diluted value of $24.53 billion. The token saw a significant price surge just before the TGE, reaching nearly $0.40, but has since declined by over 38%. Despite the volatility, the token has shown signs of stabilization, with 24-hour trading volumes exceeding $2.57 billion. However, the speculative nature of the market and potential selling pressure from large token holders remain notable risks for investors [4].

Sun has been a vocal advocate for both World Liberty Financial and Trump’s TRUMP memecoin, having invested $75 million in WLFI and committed to purchasing $100 million of TRUMP tokens. His involvement in the project has sparked interest among investors and analysts, who are closely monitoring his on-chain activity for further market signals. At the same time, the broader crypto community continues to watch for regulatory developments and political implications given the high-profile endorsements associated with the project.

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[1] World Liberty blacklists Justin Sun wallet after Tron founder ... (https://www.theblock.co/post/369534/world-liberty-blacklists-justin-sun-wallet-after-tron-founder-moves-9-million-in-wlfi-tokens)

[2] Is Justin Sun planning to sell WLFI after moving coins ... (https://www.mitrade.com/insights/news/live-news/article-3-1092336-20250903)

[3] Justin Sun Has $700 Million WLFI After Launch (https://info.arkm.com/research/justin-sun-wlfi-launch-world-liberty-trump)

[4] Justin Sun Claims $200M of Trump's WLFI Token Unlock (https://finance.yahoo.com/news/justin-sun-claims-200m-trump-174018314.html)