World Liberty Financial (WLFI), the decentralized finance protocol linked to former President Donald Trump and his family, made waves in the crypto community on Thursday by blacklisting the blockchain address of Tron founder Justin Sun. The move, which affects approximately 595 million unlocked WLFI tokens valued at around $107 million, comes on the heels of several outbound transactions from the Sun-linked address, as reported by Arkham data.
A Controversial Move
The decision by WLFI to blacklist Sun’s address has sent ripples through the cryptocurrency markets. According to blockchain data, Sun’s address had made various transactions on the Ethereum blockchain, including a significant transfer of $9 million worth of WLFI tokens. In response, Sun took to X (formerly Twitter) to clarify his position, stating that his address had only conducted minor exchange deposit tests, which he argued were harmless and did not influence the market.
In a later statement, Sun urged the WLFI team to reverse their 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,” Sun asserted. He emphasized the importance of building the protocol’s reputation on foundations of fairness and transparency rather than unilateral actions that freeze investor assets. According to him, such measures could undermine investor confidence in the project.
Market Reactions and Historical Ties
The market’s reaction was swift and sharp. WLFI tokens plummeted by 20% in the past 24 hours, marking a 42% decline since their debut on exchanges just four days ago, on September 1. This volatility highlights the precarious nature of cryptocurrency markets, where investor sentiment can shift suddenly based on news and developments. As explored in our recent coverage of Trump-Linked World Liberty Team’s Buyback-and-Burn Plan, the team is considering measures to stabilize the token’s value.
Justin Sun has played an influential role in the development of World Liberty Financial. His involvement began in late 2024 when he made a strategic $30 million token purchase and took on an advisory role. Over time, the protocol has grown increasingly intertwined with the Tron ecosystem. Notably, Tron’s native token, TRX, has been added to WLFI’s treasury, and Eric Trump has announced plans to launch the protocol’s USD1 stablecoin on the Tron network.
By mid-2025, Sun’s investment in WLFI had ballooned to approximately $75 million. As the WLFI token prepared for its market debut, Sun was reported to hold nearly $700 million worth of tokens, most of which were still vesting-locked. On the day of the WLFI launch, Sun stated that there were no immediate plans to sell his unlocked tokens. This follows the token’s initial listing on Binance, as detailed in our report on Binance’s listing of WLFI.
The Road Ahead
The unfolding drama raises pertinent questions about the governance of decentralized financial protocols and the implications of locking investor assets. The situation underscores the tensions that can arise between large investors and protocol administrators, especially when market dynamics are at stake.
As the story develops, it remains to be seen how World Liberty Financial will navigate the backlash from both the market and its investors. The protocol’s future could hinge on its ability to reconcile with key stakeholders like Justin Sun and restore confidence among its broader investor base. The incident also serves as a reminder of the challenges inherent in balancing transparency and control in the decentralized finance landscape.
For now, the crypto community watches closely, waiting to see whether WLFI will heed Sun’s call and unlock his tokens, or if this conflict will further escalate, potentially impacting the protocol’s long-term prospects.
Source
This article is based on: World Liberty Financial Blacklists Justin Sun’s Address With $107M WLFI
Further Reading
Deepen your understanding with these related articles:
- World Liberty burns 47M tokens in bid to pump price as slide continues
- Trump-Backed World Liberty Ethereum Token Debut: Here’s How It Played Out
- Trump family’s World Liberty stake surges to $5B after token unlock
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
