Justin Sun Slams World Liberty Financial Amid Pushback Over Frozen Tokens
The controversy round Justin Sun and World Liberty Financial (WLFI) continues to unwind, with the Tron founder calling out the Trump household’s DeFi venture for unfairly freezing his tokens.
The conflict highlights deep divisions within the WLFI group and raises broader questions on belief, transparency, and governance in some of the hyped initiatives of 2025.
Sun Demands Fairness and Transparency
Justin Sun confirmed that World Liberty Financial had indeed blacklisted his wallet, holding 540 million unlocked WLFI tokens and a pair of.4 billion locked tokens.
“My tokens had been unreasonably frozen…Tokens are sacred and inviolable—this needs to be probably the most fundamental worth of any blockchain. I name on the staff to respect these ideas, unlock my tokens, and let’s transfer ahead collectively towards the success of World Liberty Financials,” Sun lamented.
In the publish, shared on X (Twitter), Justin Sun mentioned he had gone past investing $75 million into WLFI, which made him the largest outside backer. Based on this, he articulated his belief and assist for the way forward for this venture.
Sun added that unilateral actions like freezing investor property threat damaging broader confidence in World Liberty Financials. He says the transfer additionally undermines the ideas of equity and transparency that blockchain is constructed upon.
Nevertheless, as BeInCrypto reported, Justin Sun and WLFI leaders are already actively speaking.
WLFI claims the choice was tied to suspicious change exercise, alleging that tokens tied to Sun had been moved towards buying and selling platforms and probably used to suppress WLFI’s value.
While WLFI didn’t identify the change, suspicions have centered on HTX, a platform the place Sun has heavy affect and which just lately supplied 20% APY on WLFI deposits.
Notaz.eth, an analyst on X, said the freeze got here after on-chain knowledge confirmed Sun’s pockets transferring 50 million WLFI, value round $9 million, towards exchanges. Shortly after, WLFI’s price slid nearly 50% from $0.30 to $0.15.
Nevertheless, Sun denies promoting, insisting the transactions had been solely “minor deposit assessments” with small quantities that might not impression the market.
我们的地址只是笼统地做了几笔交易所充值测试，金额非常低，然后做了一个地址分散，没有涉及任何买卖，不可能对市场产生任何影响。
— H.E. Justin Sun
(Astronaut Version) (@justinsuntron) September 4, 2025
Community Divided Amid Political and Market Fallout
The WLFI group stays sharply divided. Some accuse Sun of secretly offloading tokens or utilizing person funds to cowl his locked holdings.
Analyst Jacob King called Sun and WLFI “scammers” and urged traders to keep away from the venture altogether. Another person accused Sun of working market-making shorts to break WLFI’s chart.
However, others see WLFI’s actions as an overreach that contradicts blockchain’s ethos of decentralization.
“Wouldn’t freezing tokens undermine the very basis of belief and transparency that blockchain guarantees? If equity is compromised, how can World Liberty Financials count on long-term confidence from its group?” one person posed.
Even business veterans have taken sides. Analyst Quinten François argued that WLFI’s circulating provide by no means matched its reported volumes. This raises suspicion that Justin Sun and exchanges had been promoting from launch day.
“There’s two camps now: one offended at Sun for pushing WLFI down, the opposite offended on the Trumps for freezing accounts,” he stated.
The dispute has additionally taken on political dimensions. One open letter from group members urged Donald Trump, a vocal supporter of WLFI, to push regulators to analyze Sun’s buying and selling actions.
“Such conduct erodes investor confidence however can also trigger irreversible injury to the crypto venture you’ve publicly supported,” read an excerpt within the letter.
Meanwhile, WLFI’s token value has faltered regardless of billions in reported buying and selling quantity. At launch, solely 6.8% of the full provide, valued at $1 billion, was in circulation, but prices have steadily declined.
Critics argue that this factors to concentrated promoting by main holders, together with Sun and accomplice exchanges.
The WLFI controversy highlights crypto’s enduring tensions of decentralization versus management. Sun portrays himself as a sufferer of centralized overreach, whereas WLFI defends its actions as needed to guard the group from manipulation.
Both narratives have fueled skepticism at a time when retail traders already really feel burned by opaque governance and insider affect.
The publish Justin Sun Slams World Liberty Financial Amid Pushback Over Frozen Tokens appeared first on BeInCrypto.
