WLFI Blacklists Justin Sun, Freezes $104M Tokens as Price Drops
World Liberty Financial (WLFI), backed by the Trump family, blacklisted major investor Justin Sun after he transferred $9 million in WLFI tokens. The blacklist froze about $104 million of Sun’s holdings, including 545 million unlocked and 2.4 billion locked WLFI tokens. WLFI’s price fell from $0.3086 on September 1 to $0.1671 on September 4, marking a 13.8% drop. Data from The Block show the WLFI token’s decline began hours before Sun’s on-chain transfer. Sun said his transactions were routine exchange deposit tests and denied any sell-off. WLFI’s team suspects exchanges sold tokens to depress prices. The blacklist move raises questions about WLFI’s decentralization and governance. Traders and investors now face increased concerns over liquidity, asset security and transparency in WLFI’s token ecosystem.
Bearish
WLFI’s blacklist of Justin Sun and token freeze has triggered a sharp 13.8% price drop, eroding trader confidence. The sudden freeze reduces market liquidity and snarls token flows. Short-term, WLFI faces sell pressure and volatility. Uncertainty over asset security and governance transparency further dampens investor appetite. Over the long term, WLFI’s reliance on centralized controls may impair its credibility in DeFi, but improved governance could stabilize markets later. Overall, this event signals bearish market sentiment for WLFI.