Tron founder Justin Sun has once again found himself at the center of crypto controversy, this time over his frozen holdings in World Liberty Financials (WLFI).

The project blacklisted Sun’s wallet last week, freezing nearly 595 million WLFI tokens worth over $100 million at the time. Sun has since taken to social media, urging the team to unlock his assets and warning that such actions undermine investor trust.

WLFI's price trends to the downside on the hourly chart. Source: WLFIUSDT on Tradingview

Why Were Sun’s WLFI Tokens Frozen?

The dispute began after blockchain data revealed a wallet linked to Sun transferred nearly $9 million worth of WLFI tokens to an exchange. Shortly afterward, WLFI’s team blacklisted the address, effectively freezing his tokens.

Market observers claimed the move was designed to stop potential dumping that could further destabilize the token’s price, which has already lost more than 60% of its value since launch.

WLFI debuted at $0.46 but now trades near $0.18, raising concerns about whale activity and the project’s governance. Critics argue the blacklisting contradicts the very principles of decentralization that blockchain projects are supposed to uphold.

Sun Denies Dumping Allegations

In a series of posts on X (formerly Twitter), Sun rejected claims of market manipulation, stating the transfers were merely “small deposit tests” and not intended for selling. He called the freeze “unreasonable

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Author: James Halver