The Trump family-backed project World Liberty Financial (WLFI) has blacklisted Tron founder Justin Sun’s wallet. This blocks approximately 540 million unlocked WLFI tokens and another 2.4 billion locked tokens, a total value of over $100 million.
Sun had invested approximately $30 million in WLFI at the end of 2024 and received nearly three billion tokens. Although he publicly asserted that he had “no intention of selling,” transactions from a wallet close to Sun nevertheless led to the escalation.
Sun called the freeze an “unreasonable freeze” and a violation of legitimate investor rights. On X, he demanded the release of his tokens, arguing that his wallet had merely performed “generic exchange deposit tests.”
WLFI launched on September 1st with an opening price of $0.46 and temporarily collapsed to $0.25 after massive selling on major exchanges. The price currently stands at around $0.18, a loss of over 50 percent since its launch.
The ban raises key questions about decentralization and governance. Critics complain that WLFI is promoted as a DeFi project, but decisions such as wallet blacklists are made unilaterally – a contradiction to the promises of fairness and transparency. Since WLFI is closely linked to the Trump family, the case is also likely to attract regulatory attention.