Trump-Linked Crypto Blacklists Sun, Freezing $107M in Tokens

World Liberty Financial (WLFI), the cryptocurrency protocol linked to former U.S. President Donald Trump and his family, has taken action against Tron founder and major investor Justin Sun by blacklisting his blockchain address, preventing him from transferring 595 million WLFI tokens. According to Arkham data, the affected tokens are valued at approximately $107 million at current prices. The move followed several outbound transactions from Sun's address, including one worth $9 million, which blockchain data shows occurred on the Ethereum network [1]. Sun, in a translated post on X, stated that the transactions were routine exchange deposit tests with minimal amounts and did not involve any buying or selling, asserting that they could not impact the market [2].

Sun's involvement with World Liberty Financial dates back to late 2024 when he became a key backer through a $30 million token investment and advisory role. By mid-2025, his total investment in the protocol had risen to approximately $75 million, and prior to the token's market debut, he was reported to hold nearly $700 million worth of WLFI, most of which were still locked. Sun reaffirmed his long-term commitment to the project during the token’s launch, saying, “we have no plans to sell our unlocked tokens anytime soon” [1]. The blacklisting has sparked concerns about potential trading restrictions, especially given the sharp decline in WLFI’s value in the weeks following its September 1 market debut [2].

The price of WLFI has experienced significant volatility since its launch, with a 22% drop by Thursday, trading below $0.18, according to CoinMarketCap. This decline has led to speculation that WLFI might be limiting certain users from selling tokens to influence prices. In response to growing concerns, World Liberty Financial implemented a token-burning initiative on Wednesday, destroying 47 million tokens to reduce supply and theoretically boost value. However, the move has not significantly reversed the downward trend, with the token's total supply remaining at around 99.95 billion [2]. The project has also proposed a buyback program funded by protocol fees, with all repurchased tokens to be burned further to limit circulating supply [2].

The broader implications of the WLFI token’s performance extend beyond market dynamics. The Trump family holds a controlling stake in WLFI, with its combined holdings valued at approximately $5 billion as of recent trading prices. Trump himself owns roughly 15.75 billion tokens, representing over $3.4 billion in value. Additionally, the Trump family and insiders collectively own nearly a quarter of the 100 billion WLFI tokens issued, granting them significant influence over the project’s governance [3]. The project also recently expanded its reach by introducing a stablecoin, USD1, pegged 1:1 to the U.S. dollar, which WLFI holders can govern. This move is seen as an attempt to differentiate WLFI in a crowded crypto market by offering governance rights over a dollar-backed stablecoin [4].

The controversy has drawn political attention, with Democratic lawmakers and watchdogs raising concerns over potential conflicts of interest, given the administration's relaxed stance on crypto regulation. White House press secretary Karoline Leavitt has dismissed these claims, asserting that neither Trump nor his family has engaged — or will ever engage — in conflicts of interest. The administration has positioned itself as supportive of crypto innovation, even dismantling the Department of Justice’s crypto crime task force and promoting a more hands-off regulatory approach [3]. The WLFI blacklisting and subsequent price drop have further complicated the political and financial landscape, highlighting the ongoing challenges of balancing regulatory oversight with market innovation in the rapidly evolving crypto sector [5].

Source:

[1] 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)

[2] Justin Sun's WLFI wallet blacklisted after $9M token transfer (https://cointelegraph.com/news/justin-sun-wlfi-address-blacklisted)

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

[4] New crypto token boosts Trump family's wealth by $5 billion (https://www.cbsnews.com/news/trump-wlfi-world-liberty-financial-crypto-wealth/)

[5] How Trump's latest crypto launch enriches his family (https://www.npr.org/2025/09/03/nx-s1-5527047/trump-crypto-family-world-liberty-financial)