TLDR
- WLFI token worth fell 50% to $0.16 after World Liberty Financial blacklisted Justin Sun’s pockets
- Sun transferred $9 million value of WLFI tokens earlier than the blacklist, with 540 million unlocked and a pair of.4 billion locked tokens frozen
- Blockchain information reveals Sun moved 50 million WLFI to exchanges together with HTX, regardless of claiming they have been “minor deposit assessments”
- Group considerations rise over centralization and governance because the mission can freeze high-profile investor accounts
- WLFI has since recovered to $0.18 however stays down over 15% from earlier ranges
World Liberty Financial froze Justin Sun’s pockets after the TRON founder moved thousands and thousands of {dollars} in WLFI tokens. The motion despatched shockwaves by means of the crypto group and raised questions on mission governance.
Justin Sun (@justinsuntron) has deposited 5.289M $WLFI, value $1.19M into #HTX over the previous 2 days.
Justin has spent $75M to purchase 3B $WLFI and obtained 600M $WLFI as a token unlock.
Handle: 0x5ab26169051d0d96217949adb91e86e51a5fda74
Information: @nansen_ai pic.twitter.com/KTOOchpT66
— Onchain Lens (@OnchainLens) September 3, 2025
The blacklist got here after blockchain trackers detected Sun transferring 50 million WLFI tokens value $9.12 million to a brand new pockets. Analysts instructed these tokens have been headed to the HTX alternate the place Sun has been lively.
On-chain information from Arkham confirmed the blacklisted handle belongs to Sun. The freeze locked 540 million unlocked WLFI tokens and a pair of.4 billion locked tokens related along with his accounts.
JUST IN: JUSTIN SUN’S ADDRESS BLACKLISTED FOR TRANSFERRING $9M $WLFI pic.twitter.com/O25281D7mi
— Arkham (@arkham) September 4, 2025
Sun had invested $75 million to amass roughly 3 billion WLFI tokens. His holdings made him one of many largest buyers within the mission at launch.
The token skilled excessive volatility in its first buying and selling hours. WLFI debuted with over $1 billion in buying and selling quantity however shortly dropped from $0.40 to below $0.20.
Token Transfers Elevate Questions
Blockchain evaluation revealed Sun used a number of strategies to maneuver tokens. Some transfers appeared to exceed the publicly outlined vesting schedule.
Extra information confirmed Sun deposited over 5.28 million WLFI value $1.19 million into HTX over two days. An HTX-linked pockets additionally moved 60 million WLFI to a Binance deposit handle inside 32 hours.
Sun denied any market manipulation in response to the accusations. He claimed the transactions have been routine assessments and handle splitting actions.
Our handle solely carried out a number of common alternate deposit assessments with very small quantities, adopted by an handle dispersion. No shopping for or promoting was concerned, so it couldn’t probably have any impression in the marketplace.
— H.E. Justin Sun 👨🚀 (Astronaut Model) (@justinsuntron) September 4, 2025
The TRON founder insisted no precise shopping for or promoting occurred. He said such small actions couldn’t have an effect on WLFI’s market worth.
Nevertheless, the timing of the transfers earlier than the worth drop fueled hypothesis about insider promoting. Critics pointed to the substantial quantities moved as proof in opposition to Sun’s claims.
Group Divided on Response
The pockets freeze divided the WLFI community over centralization considerations. Many questioned whether or not a decentralized mission ought to have the ability to blacklist main buyers.
Some supporters argued the motion was justified to stop market manipulation. They pointed to Sun’s massive holdings and potential affect over buying and selling.
Others criticized the transfer as contradicting the mission’s decentralized governance guarantees. The power to freeze accounts raised questions on true decentralization.
HTX’s supply of 20% APY on WLFI deposits added to the controversy. Critics questioned if person funds have been getting used to suppress costs on different exchanges.
Business observers famous the vulnerabilities uncovered by the launch. The incident highlighted points with token distribution and concentrated insider possession.
Solely 6.8% of WLFI’s provide formally unlocked at launch. Nevertheless, precise buying and selling volumes instructed higher liquidity from insider promoting strain.
The value motion remodeled what ought to have been a optimistic debut right into a cautionary story. The occasions demonstrated the challenges going through initiatives with concentrated possession buildings.
Present Arkham information reveals Sun nonetheless controls roughly 595 million WLFI value $107 million. This represents his unlocked allocation, about 20% of his whole holdings.
WLFI has partially recovered to $0.18 however stays down over 15% from earlier buying and selling ranges.
