WorldLibertyFinancial (WLFI) has blacklisted an address associated with Tron founder Justin Sun, freezing 540 million unlocked WLFI tokens and 2.4 billion locked tokens. The project alleges that an exchange linked to Sun was secretly offloading user tokens to suppress WLFI's market price, which began public trading on major exchanges just days prior.
On-chain intelligence firm Arkham reported that the blacklisting occurred after approximately $9 million worth of WLFI tokens were transferred from Sun's address. Sun, WLFI's largest outside investor with a $75 million investment accumulating nearly 3 billion tokens, quickly countered these claims. He stated the address was used for "routine exchange deposit tests" involving "very small amounts" of WLFI tokens distributed to specific addresses, asserting no trading occurred and his actions had no market impact.
The controversy highlights governance concerns, as Sun's tokens were initially partially unlocked (600 million at launch), though he publicly claimed no intention to sell. WLFI's launch saw volatile trading, with volume exceeding $1 billion in its first hour and prices swinging between $0.20 and $0.40. The incident also involves political figures, as the Trump family holds 22.5 billion WLFI tokens, briefly valued at $5 billion.