- Justin Sun’s WLFI tokens, worth around $200M, were frozen after $9M in suspicious sales flagged by Nansen and Arkham.
- Sun denies selling early, calling the freeze “unreasonable” and urging the WLFI team to unlock his tokens.
- Despite controversy, Sun remains one of WLFI’s biggest backers, holding 600M tokens and pledging long-term support.
Justin Sun is back in the spotlight, and not for the reasons he’d like. On Thursday, his massive WLFI pre-sale allocation was suddenly blacklisted and frozen by the World Liberty Financial core team. The freeze came after blockchain sleuths Nansen and Arkham flagged a series of transactions tied to Sun, sparking accusations that he dumped $9 million worth of WLFI before his tokens were supposed to be unlocked.
Clash Over Decentralization
Sun quickly fired back with a post on X, insisting the freeze was unfair and violated the core values of blockchain. “Tokens are sacred and inviolable,” he wrote, reminding the team that he was one of the earliest investors in the Trump-linked project. Sun argued that blacklisting his tokens not only disrespects investor rights but could also erode wider confidence in WLFI at a time when the project is trying to gain traction.
At WLFI’s token generation event earlier this month, Sun claimed a staggering 600 million WLFI tokens—roughly $200 million worth—making him one of the largest stakeholders. He’s said repeatedly that he intends to hold long-term, even pledging to boost USD1 stablecoin liquidity on Tron by $200 million. But critics point to his nearly $1 billion stash of WLFI and aren’t convinced.
Did Sun Sell or Not?
The debate is split. Analysts like Quinten François suggest that if Sun really did sell before vesting, the freeze was justified. Others think the accusations are flimsy. Sun, for his part, denies any wrongdoing and says he’s in it for the long haul. He’s now asking WLFI’s team to unfreeze his tokens so he can “continue supporting the project.”
This isn’t his first media battle either. Just last month, Sun accused Bloomberg of publishing false info about his crypto holdings, even filing for a restraining order to stop them from using it. For now, WLFI’s next move will decide whether the freeze was a precaution—or a warning shot in a bigger fight over trust and power inside one of crypto’s loudest new projects.
