Justin Sun’s frozen WLFI tokens sparks comparisons to debanking

Trump-linked World Liberty Finance has started to attract accusations of debanking users from crypto stakeholders after high-profile token holders like Justin Sun reported that the project froze their WLFI tokens in an indiscriminate ￰0￱ September 1, 2025, the WLFI governance token had its token generation event (TGE), which unlocked 20% of the total 100 billion tokens, with Justin Sun claiming 600 million tokens valued at approximately $200 ￰1￱ Sun publicly stated that he had no plans to sell his unlocked tokens, emphasizing his alignment with the project’s long-term vision and commitment to increasing the USD1 stablecoin supply by $200 million.

However, after supposedly making an on-chain move of roughly $9 million worth of the asset, World Liberty Financial blocked his ability to transfer or use his multi-million dollar stash of ￰2￱ happened to Sun’s WLFI tokens? Sun condemned the move and has since explained that the address involved “only carried out a few general exchange deposit tests with very small amounts, followed by an address dispersion.” “No buying or selling was involved, so it could not possibly have any impact on the market,” he wrote on ￰3￱ his firm denial , some still think that Sun was secretly selling his allocation as the suspicious transactions were flagged by blockchain analytics platform Nansen and Arkham ￰4￱ it is confirmed that he was selling the tokens before they vested, some believe it is grounds for account ￰5￱ course, Sun continues to deny any wrongdoing, and he has asked that his tokens be unlocked so he can continue supporting the ￰6￱ WLFI wallets also got frozen Sun’s dispute with World Liberty Finance is the most popular, but it is not the only case of token freezing involving the ￰7￱ Liberty Finance’s response to a user who reported that their token was frozen.