Trump's Crypto Project Freezes Sun’s Stake, Defying Decentralized Ideals

The Trump family’s decentralized finance initiative, World Liberty Financial (WLFI), has sparked controversy after freezing a significant portion of its tokens belonging to billionaire crypto entrepreneur Justin Sun. The move, which restricts Sun from selling or transferring his stake, has raised concerns about the platform’s governance and its adherence to decentralized principles [1].

Sun, the founder of the Tron blockchain, one of the top 10 largest crypto networks by market cap, had been a key backer of WLFI. He initially invested $30 million in the project in late 2024 and increased it to $75 million in January 2025, making him one of the largest investors. His backing was credited with helping the project meet early fundraising targets [1]. However, this support appears to have shifted following a recent decision by World Liberty Financial to freeze Sun’s token allocations.

The freeze occurred after Sun transferred $9 million worth of WLFI tokens to the HTX cryptocurrency exchange. Blockchain analytics platforms such as Arkham Intelligence and Nansen flagged the transaction, leading to speculation that Sun might be preparing to sell his stake. In response, World Liberty Financial blacklisted Sun’s accounts, effectively locking his tokens and preventing further movement [2].

Sun has publicly criticized the freeze, calling it “unreasonable” and a violation of the principles of decentralized finance. In a post on X, he stated that he had contributed not only capital but also trust in the project. He urged the team to unlock his tokens and reaffirmed his commitment to holding the investment long-term. “Tokens are sacred and inviolable—this should be the most basic value of any blockchain,” Sun wrote [2].

The controversy highlights tensions in the governance structure of WLFI, which, like many decentralized projects, sells tokens as a means of fundraising and decentralizing control. WLFI tokens are meant to allow holders to influence the project’s future direction, yet the ability to lock accounts contradicts the ethos of decentralization. Alex Thorn, head of research at Galaxy Digital, noted that this incident is a test of the project’s narrative, which sells freedom and community rule but reveals a centralized mechanism of control [1].

Meanwhile, crypto analysts have debated the implications of the freeze. Some argue that Sun’s actions—moving tokens to exchanges and potentially selling them—justify the restrictions. Others, including Nansen’s Alex Svanevik, suggest that there is no conclusive evidence of selling. Additionally, Conor Grogan of Coinbase noted that a Binance wallet associated with Sun had received a large deposit of WLFI tokens, raising further speculation about the nature of the transactions [2].

World Liberty Financial has not yet responded to repeated requests for comment. The project, which includes President Donald Trump and his sons as co-founders, has long promoted itself as a response to the challenges of traditional banking, especially after the Trump family’s experience of being cut off from financial institutions. Yet the freezing of Sun’s tokens appears to mirror the same exclusionary tactics the project claims to oppose [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] Justin Sun urges Trump's WLFI to unlock “unreasonably” ... (https://cointelegraph.com/news/justin-sun-trump-wlfi-unlock-frozen-token)