Justin Sun WLFI Wallet Blocked After $9M Token Transfer

Tron founder Justin Sun is once again at the center of controversy after his World Liberty Financial (WLFI) wallet was blacklisted following a $9 million transfer to exchange HTX. Blockchain trackers Nansen and Arkham confirmed that Sun’s address moved 50 million WLFI tokens on Thursday, triggering immediate restrictions and fueling speculation that the project was blocking certain users from selling during its first week of public trading.

Sun quickly denied market manipulation claims, insisting in an X thread that the transactions were only “routine deposit tests” with small amounts and had “no possible impact on the market.” He added that he had no intention of selling unlocked tokens anytime soon, stressing his long-term commitment to the project. A spokesperson echoed this, confirming that Sun and the WLFI team are in active discussions to address the issue.

WLFI, a decentralized finance token backed by former U.S. President Donald Trump, launched trading on Monday with an initial surge to $0.32. However, the excitement was short-lived as the token plunged over 22% by Thursday, slipping below $0.18, according to CoinMarketCap.

To counter the sell-off, World Liberty burned 47 million tokens this week in an attempt to reduce supply and stabilize prices. The team is also considering a buyback program using protocol fees, with all repurchased tokens to be destroyed. Despite these efforts, WLFI still holds a staggering supply of nearly 100 billion tokens, leaving many investors doubtful about its long-term value.

Investor sentiment has soured rapidly, with WLFI now ranking among the ten most bearish tokens on the market. The project faces mounting pressure to restore confidence as sharp price swings continue to erode support in its early trading days.