WLFI Token Controversy: Justin Sun Denies Selling Rumors Following Address Blacklist

Trump-backed DeFi challenge World Liberty Financial has blacklisted an deal with linked to Justin Sun after it reportedly transferred a few of its WLFI tokens, sparking allegations of market manipulation.

World Liberty Financial Blacklists Justin Sun

On Thursday, World Liberty Financial reportedly blacklisted the Tron founder’s address following his latest actions of his WLFI holdings and a number of on-line accusations that he was promoting.

According to Arkham data, Sun claimed 600 million WLFI tokens on the Token Generation Event (TGE), valued at $200 million on the time, as 20% of the 100 billion tokens have been unlocked.

The Tron founder was one of many earliest investors in World Liberty Financial in 2024 and was acknowledged as the highest holder of US President Donald Trump’s official memecoin, TRUMP, earlier this 12 months.

On September 1, he shared his conviction on the token, affirming that WLFI “will likely be one of many largest and most essential initiatives in crypto.” He additionally stated that he had “no plans to promote our unlocked tokens anytime quickly. The long-term imaginative and prescient right here is just too highly effective, and I’m totally aligned with the mission.”

Nonetheless, a number of on-chain evaluation platforms revealed that Sun had began to maneuver his unlocked tokens, sparking rumors that he was promoting. On-chain information confirmed that he had despatched 4.9 million WLFI to crypto alternate HTX, owned by the Tron Founder, over the previous two days.

Sun reportedly transferred 50 million tokens, price $9.12 million, to a brand new pockets on Thursday morning, “more likely to be deposited into HTX.” Meanwhile, Wu Blockchain famous that over the previous 32 hours, HTX deal with “HTX 48” transferred roughly 60,000,000 WLFI tokens to Binance deposit deal with 0xf387D7…29FcB5.

Sun Denies WLFI Selling Accusations

Following the $9 million transfer, “World Liberty Financial’s controlling deal with 0x407F…5178 referred to as the guardianSetBlacklistStanding operate on the WLFI Token contract, blacklisting the deal with 0x5AB2…DA74, which is related to Justin Sun,” Wu Blockchain explained.

The motion froze Sun’s unlocked and a pair of.4 billion locked WLFI tokens. Tron’s founder responded to the accusations on X, stating that his deal with simply performed “a couple of check deposits on exchanges with very low quantities, adopted by an deal with distribution.”

He added that these assessments “didn’t contain any buying and selling actions and couldn’t have impacted the market in any approach,” however didn’t touch upon the blacklist. At the time of writing, World Liberty Financial has not addressed the state of affairs.

WLFI’s Price Hits New Low

The information comes as WLFI’s value struggles simply three days after launching. Earlier in the present day, the token hit an all-time low (ATL) of $0.16 earlier than bouncing to the $0.18 mark. This efficiency represents a 20% decline over the previous 24 hours and an almost 45% drop from its all-time high (ATH) of $0.33.

Market watcher Daan Crypto Trades noted that the cryptocurrency has damaged down from a triangle formation, the place the value was compressing for the previous two days. According to the dealer, WLFI noticed a “fast acceleration as anticipated” and “even gave a pleasant retest earlier than the continuation down.”

Meanwhile, analyst Ali Martinez suggested that te backside may not be in, highlighting that the token now dangers a 25%-50% drop after dropping the $0.20 space as help.