Justin Sun’s WLFI Wallet Blacklisted After $9M Transfer

Key Takeaways

• Justin Sun’s WLFI wallet address was blacklisted after transferring 50 million tokens worth $9 million
• The restriction raised speculation about selective trading limitations affecting token prices
• Sun claimed the transfer was routine testing, not actual selling activity
• WLFI token has dropped 22% since launch, trading below $0.18
• World Liberty Financial is implementing token burns and considering buybacks to support prices
  

Wallet Blacklisting Sparks Controversy

The Tron founder’s World Liberty Financial (WLFI) token address faced blacklisting after transferring 50 million WLFI tokens to crypto exchange HTX. Onchain data from Nansen and Arkham confirmed the address was flagged immediately following the $9 million transaction.

This blacklisting triggered widespread speculation that WLFI was implementing selective restrictions to prevent certain users from selling tokens, potentially manipulating prices during the first week of public trading.

Sun’s Response to Allegations

Addressing the controversy, Sun clarified that his address had only conducted routine exchange deposit tests using small amounts of WLFI tokens before creating address dispersion. He emphasized that the activity involved no actual buying or selling and “could not possibly have any impact on the market.”

The restriction aligned with Sun’s previous commitment statement where he declared he “will not be selling soon,” demonstrating continued project support. As an early presale participant, Sun had stated: “We have no plans to sell our unlocked tokens anytime soon. The long-term vision here is too powerful, and I’m fully aligned with the mission.”

Token Performance Decline

World Liberty Financial, the decentralized finance project backed by US President Donald Trump, officially launched trading earlier this week. After initially surging to approximately $0.32, the token experienced sharp declines.

The token has since fallen dramatically, dropping 22% and trading below $0.18 according to market data. This significant price volatility has become a primary concern for the project’s sustainability.

Price Support Measures

Responding to declining values, World Liberty Financial has implemented several strategies to restrict supply and support token prices:

Token Burning Initiative

The project burned 47 million tokens according to onchain data, aiming to reduce circulating supply and theoretically increase remaining token value. Despite this burn, WLFI’s total supply remains at approximately 99.95 billion tokens.

Proposed Buyback Program

World Liberty has proposed a buyback program funded by protocol fees, with all repurchased tokens designated for burning to further limit supply.

Market Sentiment and Investor Confidence

Sharp price swings and mounting losses have significantly eroded investor confidence. Market sentiment data indicates WLFI ranks among the ten most bearish tokens, reflecting widespread pessimism about the project’s immediate prospects.

The combination of technical restrictions, price volatility, and unclear communication has created uncertainty around the token’s trading mechanisms and long-term viability.