Justin Sun’s Frozen WLFI Tokens Plummet $60M Since September - What’s Next?

Another crypto whale takes a bath—Justin Sun's locked WLFI stash sheds a staggering $60 million in value since September. The frozen tokens, once a show of diamond-handed conviction, now look more like an anchor in choppy waters.

When Freeze Turns to Freefall

Token lock-ups promise stability—they're supposed to signal long-term faith while preventing market dumps. But when the underlying asset nosedives, that 'strategic hold' starts feeling more like a forced captivity. The numbers don't lie: a $60 million evaporation since autumn paints a brutal picture of depreciation in motion.

The Ironic Math of 'Secure' Holdings

Here's the finance jab: in traditional markets, they call this 'dead money'—capital tied up in assets going nowhere fast. In crypto, we dress it up as 'staking' or 'governance participation.' The result? Same difference. Liquidity vanishes while paper losses mount—a masterclass in watching wealth evaporate from behind glass.

What happens when thaws meet low tides?

All lock-ups eventually expire. The real question isn't about current paper losses—it's about what happens when these tokens finally hit the market. Will it be a controlled release or a flood into shallow demand? One thing's certain: in crypto, today's frozen asset can become tomorrow's selling pressure faster than you can say 'unlock schedule.'

How the dispute began

This problem emerged in September 2025, shortly after their token generation event (TGE), and just before the freeze, on September 2, 2025, Sun announced that he had claimed $200 million of WLFI tokens, obtaining approximately 600 million tokens in total.

He stressed he had no plans to sell, describing himself as a long-term supporter of the project. At the time, blockchain data suggested his total WLFI holdings were valued close to $900 million.

The blacklisting followed a transfer of roughly $8.9 million worth of WLFI tokens from Sun’s wallet to another address. Shortly after, WLFI’s token contract froze the wallet, preventing any further transfers.

Sun later clarified that these movements were routine wallet tests and address management, not an attempt to sell tokens, and insisted they had no impact on the market.

Political ties and an unresolved standoff

The situation stands out given the scale of Sun’s backing of Trump-linked crypto ventures. He invested about $175 million across Trump-associated tokens, including $75 million in WLFI and roughly $100 million in the TRUMP memecoin.

Sun also became the largest holder of the TRUMP token and attended a Gala dinner hosted by President Trump, where he received a “Trump Golden Torbillon” watch.

Sun has publicly rejected claims of wrongdoing, calling the freeze “unreasonable” and arguing that locking tokens goes against Core principles of crypto. Despite the standoff, he even pledged additional purchases of Trump-linked tokens.

Since WLFI began trading in September 2025, its price has dropped over 55% and currently sits around $0.1326. With President Trump’s three sons listed as co-founders, WLFI has not indicated if Sun’s wallet will be unblocked, leaving the dispute unresolved.

Also Read: ​​Justin Sun Reveals Major Breakthrough in $500M TUSD Fraud Case