Trump-Linked WLFI Freezes $107M of Justin Sun’s Tokens Amid Market Turmoil

World Liberty Financial (WLFI), the crypto protocol linked to U.S. President Donald Trump and his family, has taken action to restrict the movement of tokens from key investor and Tron founder Justin Sun. On September 4, WLFI blacklisted Sun’s blockchain address, which holds approximately 595 million unlocked WLFI tokens valued at around $107 million at current prices. This move came after several outbound transactions from the address, including one worth $9 million in WLFI tokens, according to onchain data from Arkham and Nansen [1][2]. Sun has stated in a translated X post that the address only conducted a few routine exchange deposit tests and created address dispersion, without involving any buying or selling, and therefore could not have influenced the market [1].

The blacklisting has intensified scrutiny on WLFI as the token’s value has tumbled. Over the past 24 hours, WLFI has dropped by 20% and has lost 42% of its value since it debuted on exchanges on September 1. The decline has raised questions about market manipulation and trading restrictions, particularly in the early days of public trading. On Thursday, WLFI’s price fell to a low of $0.18, down 22% from its initial peak of about $0.32, according to CoinMarketCap [2]. In response, World Liberty Financial has taken steps to shore up prices, including burning 47 million tokens and proposing a buyback program to reduce the circulating supply and, in theory, increase the value of remaining tokens [2].

Justin Sun, a major early investor in WLFI, initially committed $30 million to the project in late 2024. By mid-2025, his total investment in the protocol had grown to approximately $75 million. On the eve of the token’s market debut, he was reported to hold nearly $700 million worth of WLFI tokens, most of which remained vesting-locked [1]. Sun reaffirmed his long-term commitment to the project in a public statement, saying that “we have no plans to sell our unlocked tokens anytime soon,” and that the vision for WLFI was “too powerful” to pursue short-term gains [2].

Meanwhile, the Trump family’s stake in WLFI has significantly increased in value since the token’s public launch. As of September 3, the Trumps held nearly 22.5 billion WLFI tokens, representing approximately 22.5% of the total supply and valued at roughly $5 billion based on WLFI’s trading price. Donald Trump himself holds over 15.75 billion WLFI tokens, with a reported value exceeding $3.4 billion [3]. The Trumps also receive a share of the revenue from coin sales, with World Liberty Financial already generating over $500 million from token sales, according to Reuters [3]. The Trump administration has defended these activities, stating that neither the president nor his family engages in conflicts of interest, while critics have raised concerns about potential corruption and regulatory conflicts [4].

The token’s launch has also been accompanied by broader efforts to expand the use of stablecoins and blockchain technology in financial services. WLFI’s USD1 stablecoin, pegged 1:1 to the U.S. dollar, is being positioned as a tool for financial inclusivity, particularly for startups and underserved communities. In partnership with HTX, WLFI has introduced crypto payroll solutions and Web3 banking services designed to offer faster, more cost-effective cross-border transactions compared to traditional systems like SWIFT [6]. These initiatives are part of a broader push to integrate blockchain-based financial tools into mainstream economic systems, especially in regions with limited access to traditional banking services [6].

As WLFI navigates the volatile early stages of public trading, the focus remains on balancing investor confidence with regulatory scrutiny and market stability. The Trump administration has emphasized a more hands-off approach to crypto regulation, a shift that has drawn both support from industry stakeholders and criticism from lawmakers and watchdog groups. With WLFI’s price swings and insider holdings under close observation, the long-term success of the project will depend on its ability to sustain value, manage supply, and maintain public trust in its governance and transparency.

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)

[6] WLFI & HTX: Transforming Crypto Banking for Startups (https://www.onesafe.io/blog/wlfi-htx-partnership-revolutionizing-crypto-banking)