Justin Sun’s $9M WLFI Stake Frozen by WLFI Governance
World Liberty Financial has blacklisted Justin Sun’s wallet, freezing over 2.9 billion WLFI tokens, including 540 million unlocked and 2.4 billion locked tokens. On-chain data from Arkham shows Sun transferred roughly $9 million worth of WLFI tokens to HTX-linked and Binance deposit addresses before the freeze. The WLFI token price plunged more than 20% in a single session and has dropped 64% over the past week.
Sun, founder of Tron (TRX) and HTX advisor, says the transfers were routine tests and demands the WLFI governance team restore his access. He has invested at least $75 million into the WLFI token and pledged $100 million toward the project’s memecoin, arguing the freeze undermines investor confidence and violates token inviolability.
World Liberty Financial, co-founded by former President Donald Trump, holds a 60% stake in the project and receives 75% of token-sale revenue. Critics warn that centralized governance and political ties pose risks to market stability. Traders should monitor on-chain data and governance updates for signs of resolution or further disruptions.
Bearish
The freezing of Justin Sun’s $9 million WLFI token stake triggered a sharp price plunge of over 20% in one session and a 64% weekly drop. Centralized governance concerns and political ties undermine investor confidence, suggesting continued selling pressure and volatility. In the short term, market instability around the WLFI token is likely to persist. Long-term impact depends on resolution of governance disputes, but current sentiment remains negative.