World Liberty Finance Blacklists TRON Wallet Over $11M WLFI Case

A high-stakes confrontation is unfolding between World Liberty Financial (WLF) and its largest investor, Justin Sun, after the undertaking blacklisted a pockets containing billions of its WLFI tokens.

The transfer, which successfully froze an estimated $100 million in property, follows intense market hypothesis that Sun was liable for a major sell-off, contributing to a dramatic value collapse for the token.

Blacklist Sparks Governance Crisis

On September 5, blockchain analytics account Spot on Chain revealed that WLF’s controlling deal with invoked the blacklist operate on the WLFI contract, concentrating on pockets 0x5AB2…DA74. The deal with had purchased three billion WLFI in the course of the undertaking’s preliminary coin providing (ICO), unlocked 600 million, and just lately moved 54 million tokens, value round $11 million, to recent wallets.

By blacklisting the deal with, WLF froze the remaining tokens indefinitely. Commentators rapidly pounced on the event. “WLFI simply proved DeFi isn’t ‘decentralized’ in any respect … it may be blacklisted, frozen, shut down,” wrote analyst Shanaka Anslem Pereira, evaluating the maneuver to IMF-style controls.

Justin Sun, who invested $75 million into WLF in 2024, hit again on X, blasting the freeze as unjust. “My tokens have been unreasonably frozen,” he wrote, stressing that “tokens are sacred and inviolable—this needs to be essentially the most primary worth of any blockchain.”

Sun went additional, warning that WLF’s actions “not solely violate the authentic rights of traders, but additionally danger damaging broader confidence in World Liberty Financials.”

Price Fallout and Market Outlook

At the time of this writing, WLFI was buying and selling at $0.1815, down 1.6% on the day after dipping as a lot as 4.2% up to now hour. The token has collapsed almost 40% from final week’s high of $0.3087 and is now down 45% from its September 1 peak of $0.3313.

Yesterday, promoting strain drove WLFI to a report low of $0.164 earlier than it rebounded barely. For now, buying and selling stays frenzied, with greater than $1.3 billion in each day turnover, whereas the undertaking’s market cap stands close to $4.9 billion, which nonetheless places it throughout the international prime 40.

The standoff between Sun and the WLF workforce is now the defining check for the undertaking. If the blacklist stays, observers say it dangers cementing perceptions that WLF’s governance is centralized and arbitrary.

However, even when it have been to be reversed, the blacklist may have already got harmed WLF’s credibility, which, some time again, noticed the Trump household quietly trim its possession from 60% to 40%. In both case, WLF’s promise of a “decentralized” monetary system is going through its most vital problem but.

The publish World Liberty Finance Blacklists TRON Wallet Over $11M WLFI Case appeared first on CryptoPotato.