Trump Crypto Project Freezes Billion-Dollar Investor Over Night

Late developments in the Trump family's World Liberty Financial (WLFI) project have sparked controversy after the project reportedly froze over $100 million worth of tokens held by billionaire crypto investor Justin Sun. Sun, known for his role in developing the Tron blockchain, had invested $75 million in WLFI in January 2025, significantly boosting the project's visibility and fundraising efforts [1]. However, after transferring $9 million worth of tokens to other wallets, Sun alleged that World Liberty Financial locked his account, effectively preventing any transactions [2]. The move has raised concerns over governance and control within the crypto venture, which is marketed as a platform for financial freedom [1].

WLFI, a governance token launched in October 2024, began public trading in late August 2025, with a peak price of $0.22 before dropping nearly 40% in just four days. Despite the decline, the token remains above the initial purchase price for many early investors, who have seen their holdings unlock for trading [2]. The Trump family, which owns approximately 15.75 billion WLFI tokens, holds a stake valued at over $3.4 billion as of early September 2025 [1]. The entire Trump family’s ownership of roughly 24.7 billion tokens positions them with total holdings worth around $5 billion, according to public data [2].

The controversy has drawn attention to the governance structure of WLFI, which, while marketed as decentralized, has shown centralized control over user wallets. This has led to criticism from analysts, who argue that the project's claim to financial independence is undermined by its ability to restrict access to tokens. Galaxy Digital’s research team identified over 200 addresses with WLFI tokens that were locked at various times before and after the token’s public trading debut [1]. The freezing of tokens has been compared to “debanking” — the practice of restricting access to financial services, a concern the Trump family has previously raised about traditional banking systems [1].

Justin Sun has publicly urged World Liberty Financial to unlock his tokens, emphasizing his support for the project and its long-term success. “Unlock my tokens, and let's move forward together toward the success of World Liberty Financials,” he wrote on X [1]. Sun also offered to buy $10 million in stock of a publicly traded Trump-linked company and an additional $10 million in WLFI as a gesture of goodwill [3]. However, the project has not responded to his requests or provided an explanation for the wallet freeze.

The broader political implications of WLFI’s governance model have also been scrutinized, particularly in light of Trump's presidential campaign promises to position the U.S. as the “crypto capital of the world.” Critics, including members of the Democratic Party, argue that the Trumps' financial stake in WLFI creates a conflict of interest, especially as the administration is expected to influence policy on crypto regulation [2]. The U.S. Securities and Exchange Commission (SEC) has historically treated similar token offerings as securities, subjecting them to existing financial regulations, but the current administration has signaled a more lenient approach to the industry [2].

The incident highlights the tension between decentralization and control in the crypto space. While WLFI is designed to enable community-driven governance, the recent actions taken by its administrators suggest otherwise. Analysts at Galaxy Digital have noted that this episode will likely be a test of the project’s narrative, as it seeks to balance centralized control with the ideals of decentralization [1].

Source:

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

[2] Trump and sons' stake in crypto firm worth $5bn (https://www.bbc.com/news/articles/ckgjgyyqgvyo)

[3] 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/)