World Liberty Financial (WLFI), a crypto protocol linked to former US President Donald Trump and his family, has blacklisted the blockchain address of Tron founder Justin Sun. The move prevents Sun from transferring WLFI tokens worth an estimated $107 million, according to data from Arkham.
The address in question holds around 595 million unlocked WLFI tokens. While Sun remains one of the protocol’s largest backers, the blacklisting effectively halts his ability to move a significant portion of his holdings.
Blockchain transactions of WLFI tokens linked to Justin Sun (Arkham Intelligence)
Blockchain data showed that the Sun-linked address had made several outbound transfers of WLFI tokens, including a transaction involving $9 million worth of the asset.
Sun Responds: “Unilateral Action is Unfair”
In a translated post on X, Sun clarified that the transactions were merely “generic exchange deposit tests” involving small amounts and address dispersion. He stressed that no buying or selling had taken place and therefore, the activity could not have affected the market.
Sun later released a stronger statement, urging the WLFI team to reverse its decision:
“I call on the team to respect these principles, unlock my tokens, and let’s move forward together toward the success of World Liberty Financials. A truly great financial brand must be built on fairness, transparency, and trust—not on unilateral actions that freeze investor assets.”
He added that such actions undermine investor rights and could erode confidence in the project as a whole.
Representatives for both Sun and WLFI did not immediately respond to requests for comment.
Token Under Pressure
The controversy triggered a sharp decline in WLFI’s price. The token tumbled 20% in the past 24 hours and has now lost 42% of its value since trading began on 1 September.
Market observers suggest that freezing a major investor’s address may raise concerns among token holders about governance, investor rights, and overall protocol transparency.
Sun’s Deep Ties to WLFI
Justin Sun has been a prominent backer of World Liberty Financial since late 2024, when he invested $30 million and joined as an adviser. His involvement has since expanded WLFI’s ties to the Tron ecosystem.
The protocol added TRX, Tron’s native cryptocurrency, to its treasury, while Eric Trump announced plans to launch WLFI’s stablecoin, USD1, on the Tron network.
By mid-2025, Sun’s total investment in WLFI had grown to roughly $75 million. On the eve of WLFI’s market debut, reports indicated that he held nearly $700 million worth of WLFI tokens, the majority still locked under vesting agreements.
Earlier this week, Sun publicly stated that he had no plans to sell his unlocked holdings “anytime soon.”
What Comes Next
The decision to blacklist Sun’s address highlights the ongoing tensions between decentralised ownership principles and the control exercised by protocol operators. While self-custody remains a cornerstone of blockchain, token issuers can still impose restrictions at the smart contract level.
For WLFI, the move raises pressing questions about governance, investor protections, and the long-term credibility of the project. With the token already under heavy selling pressure, restoring investor confidence may now depend on how the team responds to Sun’s calls for transparency and fairness.
