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 time. Sun has since taken to social media, urging the team to unlock his assets and warning that such actions undermine investor trust.

Why 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 exchange. Shortly afterward, WLFI’s team blacklisted the address, effectively freezing his tokens.

Market 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 launch.

WLFI debuted at $0.46 but now trades near $0.18, raising concerns about whale activity and the project’s governance. Critics argue the blacklisting contradicts the very principles of decentralization that blockchain projects are supposed to uphold.

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 selling. He 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 wrote. He 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 activity.

The standoff between Sun and WLFI has amplified investor concerns about centralization and transparency within the project. Critics warn that blacklisting wallets without clear communication risks damaging WLFI’s credibility, especially at such an early stage.

In 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 sentiment.

For 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 challenges.

Cover image from ChatGPT, WLFIUSDT chart from Tradingview