Justin Sun Faces Backlash After Urging WLFI to Unfreeze Tokens

Tron founder Justin Sun has once again found himself at the center of crypto controversy, this time over his frozen holdings in World Liberty Financials (WLFI). The project blacklisted Sun’s wallet last week, freezing nearly 595 million WLFI tokens worth over $100 million at the ￰0￱ has since taken to social media, urging the team to unlock his assets and warning that such actions undermine investor ￰1￱ Were Sun’s WLFI Tokens Frozen? The dispute began after blockchain data revealed a wallet linked to Sun transferred nearly $9 million worth of WLFI tokens to an ￰2￱ afterward, WLFI’s team blacklisted the address, effectively freezing his ￰3￱ observers claimed the move was designed to stop potential dumping that could further destabilize the token’s price, which has already lost more than 60% of its value since ￰4￱ debuted at $0.46 but now trades near $0.18, raising concerns about whale activity and the project’s ￰5￱ argue the blacklisting contradicts the very principles of decentralization that blockchain projects are supposed to ￰6￱ Denies Dumping Allegations In a series of posts on X (formerly Twitter) , Sun rejected claims of market manipulation, stating the transfers were merely “small deposit tests” and not intended for ￰7￱ called the freeze “unreasonable” and insisted that all investors should be treated equally.

“Tokens are sacred and inviolable, this should be the most basic value of any blockchain,” Sun ￰8￱ added that unilateral freezes risk eroding confidence in WLFI, a project he supported early with both capital and strategic backing. On-chain analysis from firms like Nansen has also suggested Sun was not directly responsible for WLFI’s sharp price decline, instead linking the sell-off to large market-maker ￰9￱ Concerns and Market Outlook The standoff between Sun and WLFI has amplified investor concerns about centralization and transparency within the ￰10￱ warn that blacklisting wallets without clear communication risks damaging WLFI’s credibility, especially at such an early ￰11￱ an attempt to stabilize prices, the WLFI team has announced a buyback-and-burn program, including the destruction of 47 million tokens.

However, uncertainty remains high as the dispute with Sun continues and market volatility weighs on investor ￰12￱ now, Sun is pressing WLFI to restore his rights and unlock his frozen tokens, while the broader crypto community debates whether the project can recover trust, or whether this controversy marks the start of deeper governance ￰13￱ image from ChatGPT, WLFIUSDT chart from Tradingview