An Ethereum wallet linked to Tron founder Justin Sun has been blacklisted by World Liberty Financial after moving over $9 million worth of WLFI tokens, according to blockchain data from Arkham and Nansen. The WLFI token, native to the Trump family-backed DeFi project, subsequently dropped 19% to $0.1789, marking a 45% decline from its launch price above $0.33 earlier this week.
Sun denied selling tokens in a statement on X, claiming the transfers were merely "deposit tests" with very low amounts and involved no buying or selling. However, World Liberty Financial's blacklisting action suggests possible violation of token warrant terms that prohibit early investors from selling for a set period. Early investors including Sun purchased WLFI at $0.015 per token during presale, maintaining 10x+ gains despite the price drop, while retail traders who bought at launch prices face significant losses.
Analysts from Compass Point had previously warned that WLFI could "decimate retail traders," noting parallels with Trump's Solana-based meme coin TRUMP which remains 88% below its peak. Trading data shows strongest interest in South Korea, with Upbit and Bybit facilitating $190M and $95M in daily volume respectively, compared to $70M on Coinbase.