WLFI Wallet Linked to Justin Sun Blacklisted After $9M Transfer
World Liberty Financial (WLFI) is a decentralized finance (DeFi) project built on the Tron blockchain, created by Justin Sun with backing from Donald Trump.
During its launch week, WLFI faced further scrutiny after blockchain analytics firms Nansen and Arkham Intelligence reported that Sun’s WLFI wallet was blacklisted. The wallet had transferred 50 million WLFI tokens (worth ~$9M) to HTX, sparking fears of address blocking to prevent sell-offs amid high volatility.
Sun Responds to Blacklist Rumors
Sun addressed the speculation via X (Twitter), stating that the flagged transfers were normal exchange deposit tests. He emphasized that the wallet “does not engage in trading” and therefore has “no possible impact on the market.”
He reassured investors:
“We will not be selling any of our unlocked tokens for the foreseeable future. The mission is too powerful to abandon.”
A WLFI spokesperson also told Cointelegraph that Sun was in active discussions with the WLFI team.
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WLFI Token Struggles Despite Burn
WLFI launched trading on Monday, initially hitting $0.32, before collapsing to $0.18 by Thursday — a 22% drop, according to CoinMarketCap.
In response, WLFI initiated a burn of 47 million tokens on Wednesday to reduce circulating supply and boost investor confidence. Despite this, the total supply remains near 100 billion.
The project also introduced a token buyback-and-burn program, funded through protocol fees, to further tighten supply.
Still, investor sentiment remains weak, with WLFI ranking among the top 10 bearish tokens by sentiment trackers.
Why It Matters
The WLFI saga highlights the risks of politicized crypto projects, where celebrity involvement, volatile tokenomics, and centralized control mechanisms (like wallet blacklisting) raise red flags for investors.
According to Sun, the controversy has sparked renewed concerns about WLFI’s governance model, and whether such measures can restore investor trust.
