Breaking: World Liberty Fi Blacklists Two Justin Sun-Linked Wallets in Major Security Move
World Liberty Fi drops the hammer—two wallets tied to crypto mogul Justin Sun just got blacklisted. No warnings, no explanations—just swift action from the decentralized finance platform.
The Fallout Hits Fast
Sun’s operations face yet another public setback as World Liberty Fi enforces its compliance protocols. The move signals deepening scrutiny around high-profile figures in the defi space—even the big players aren’t immune.
Power Play or Overreach?
Blacklisting wallets isn’t new, but when it involves someone like Sun—it’s headline fuel. Is this about security, regulation, or just good old-fashioned corporate rivalry? Either way, it’s a stark reminder: in crypto, your keys might be yours—until they’re not.
Another day, another drama—because what’s finance without a little performative risk management?
WLFI tokens were frozen in two of Justin Sun’s wallets, locking up $500M of investments. | Source: Etherscan
The blacklisting was seen as a drastic measure, since Sun was among the top project backers and helped close the presale rounds faster with large-scale purchases.
Soon after the blacklisting became public, a wallet identified as HTX48 started sending back WLFI to the token’s contract.
Sun denied the allegations that he has been dumping WLFI through his own exchange. Instead, he stated the token moves were experimental and had to test the exchange infrastructure.
Justin Sun denied the attempts to sell WLFI, instead claiming he was moving tokens as an experiment. HTX recently announced a yield vault for WLFI and TRUMP with the highest annualized yield. | Source: X
On-chain researchers also discovered attempts to send WLFI to Binance. For now, the token is not even listed on the exchange, but the highly active transfers from wallets connected to Justin Sun further boosted the suspicions of plans to sell.
WLFI kept sliding after the wallet lock
The suspicion against Sun was that on HTX, the token was somehow sold, essentially tanking the market price.
WLFI slid further to $0.18, losing over 40% since its initial post-unlock rally. The token was in price discovery mode, moving from DEX trading to more listings. HTX actually promised to be one of the token’s platforms.
However, HTX volumes were not reported. Most of the WLFI traffic still relied on Bitget and OKX, as well as Mexc and Gate.
World Liberty Fi tried to discourage whales from selling
The start of trading for WLFI did not see any team wallets cashing out. The Trump family DeFi project tried to be more careful in comparison with the handling of meme tokens. This time around, the project tried to discourage whales from cashing out.
WLFI also took another hit from a new reserve wallet that was revealed just during the unlock. A special reserve wallet has been created, which will only be spent based on community voting. World Liberty Fi still aims to discourage selling on the open market, though it cannot prevent some whales from realizing profits.
Based on initial data, 85,000 wallets held WLFI following the presale rounds. Of those wallets, 29% of buyers at the ICO sold completely. Another 10% sold some of their holdings. The remaining 60% of wallets were apparently true believers, still holding onto their WLFI.
Hyperliquid whales signal a bearish outlook for WLFI. 12 out of 19 whales hold short positions, which achieved higher unrealized profits.
Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.
