Justin Sun’s $60M Locked World Liberty Tokens Spark Governance Dispute

Justin Sun faces a $60 million decline in locked World Liberty Financial (WLFI) tokens after the project blacklisted 272 wallets, including one linked to the prominent crypto entrepreneur. The blacklisting, enacted months ago due to suspected phishing and suspicious activity, froze Sun's ability to transfer or receive WLFI tokens—a move he vehemently contested as unjustified.

Sun, an early backer of WLFI, had transferred roughly $9 million in tokens before the throttling mechanism triggered. His public advocacy for the project made the freeze particularly jarring. "I’ve invested more than capital—I’ve provided strategic support to bolster credibility," SUN argued, criticizing the blacklist for sidelining his governance influence.

The dispute highlights tensions between project security measures and investor rights. Sun’s frozen position coincides with eroding token value, though WLFI maintains the action was necessary to mitigate broader risks. No resolution has been reached.