Justin Sun Blacklisted Following Dramatic WLFI Token Price Collapse

Justin Sun, the Tron founder and high-profile crypto investor closely linked to the Trump family, has found himself at the center of a storm after his wallet was blacklisted by World Liberty Financial (WLFI) following a severe 61% plunge in the token’s price since its September launch.

Once a prominent backer and strategic ally, Sun is now finds himself being dumped in the ditches following speculations that he was the one responsible for the price drop.

Shortly after its debut on Monday, WLFI’s native token experienced a sharp fall from a launch peak of $0.47 to around $0.18 within days, triggering panic among investors.

In response, WLFI froze between 540 and 595 million unlocked tokens associated with Justin Sun’s wallets—valued at over $100 million—as well as an additional 2.4 billion locked tokens. This blacklisting effectively barred Sun from moving a significant portion of his portfolio and sent shockwaves through both the project and the market.

This action marked a stark reversal for Sun, who was one of the biggest investors of the project after throwing in $30 million WLFI back in November 2024 and ammassing holdings valued at nearly $700 million by launch day.

Previously, he had showcased loyalty to the Trump crypto ecosystem, including significant positions in the TRUMP memecoin.

Conflicting Narratives: Sun’s Defense vs. WLFI’s Accusations

Following the fall of the WLFI token, many have pointed at Sun and accused him of manipulating the market and scripting the token's price collapse.

But Sun has since vehemently denied these allegations, asserting that his transactions were limited to small deposit tests and address distributions without any buy or sell activity, and therefore could not have impacted the market.

In his second message to WLFI, Sun pleaded for the project to lift the freeze on his tokens, arguing that such punitive unilateral measures threaten investor trust and damage the project’s reputation. He stressed that a successful financial brand requires fairness and transparency, criticizing the freeze as unfair to legitimate holders.

But despite his defense, accusations persist and the matter worsens, deepening the rift between Sun and his former Trump allies.

Speculations Of Justin Sun's Involvement

On social media, opinions are sharply divided. Some accuse Sun of orchestrating market maneuvers disguised as minor transfers, possibly leveraging “20% APY” offers to encourage token deposits that were quietly sold on exchanges like Huobi.

More extreme voices have labeled Sun an “infiltrated agent” of foreign interests seeking to destabilize WLFI. Conversely, blockchain analysts such as Bubblemaps suggest the on-chain movements (around $9 million) resemble internal operations rather than deliberate sell-offs.

Regardless, the token’s volatility has heightened concerns over WLFI’s centralized governance, where project developers can freeze accounts of even top investors without clear explanation.

WLFI’s price drop of 61% corresponds with significant losses for smaller retail investors who bought above $0.33, facing declines exceeding 45%. Meanwhile, early large-scale investors like Sun remain largely profitable due to presale pricing.

The ongoing conflict has turned WLFI from a hyped DeFi gateway tied to Trump family branding into a narrative battlefield of trust, allegiances, and governance challenges.

Many insiders credit Sun’s early involvement with helping the project gain momentum, even as his fallout highlights the fragility of celebrity-backed crypto ventures.

Fragile Alliances in Crypto and Politics

Sun’s experience underscores the precarious nature of partnerships between political figures and crypto influencers. Like Elon Musk—once an ally of Donald Trump but later embroiled in public disputes—Sun’s journey reflects how swiftly alliances can fracture under market and reputational pressure.

The WLFI saga reminds investors that despite the promise of decentralized finance, centralized decision-making and reputational risks remain significant.