Tron founder Justin Sun is pushing back after World Liberty Financial (WLFI) froze his token holdings, calling the move unfair and urging the project to reverse its decision.
In a series of posts on X early Friday, Sun defended himself, saying he had invested in WLFI like any other participant and that his tokens should be treated equally.
I am innocent. https://t.co/Vg0S0PT34z
— H.E. Justin Sun 👨🚀 (Astronaut Version) (@justinsuntron) September 5, 2025
“I have contributed not only capital but also my trust and support for the future of this project,” Sun wrote. “However, during the course of operations, my tokens were unreasonably frozen.”
Sun described his holdings as “sacred and inviolable,” adding that blockchain’s promise lies in fairness and transparency, not unilateral freezes. He called on WLFI’s team to “unlock my tokens” and restore confidence in the project.
Why Sun’s Wallet Was Blacklisted
On Thursday, WLFI’s token contract blacklisted a wallet linked to Sun, preventing him from transferring or using the tokens in governance. The move came shortly after blockchain data showed the address sent 50 million WLFI (around $9 million) to another wallet. That address later funneled funds into HTX, a crypto exchange where Sun sits on the Global Advisory Board.
I think it’s totally fair that your tokens were locked. You probably had a verbal agreement with the trumps not to sell your tokens. You obviously were using your tokens for market making with + shorts to destroy the tokens chart
— ACE | XAE (@Ace_All_In) September 5, 2025
Further flows followed: another 60 million WLFI were routed through HTX wallets and eventually into a Binance deposit address. On-chain analysts from Arkham and Coinbase’s Conor Grogan noted the transfers, with Grogan saying the 60 million WLFI represented more than half of HTX’s WLFI holdings at the time.
World Liberty Financial has not publicly commented on why the freeze was enacted and did not respond to media requests for clarification.
Sun Maintains Innocence
Facing criticism from community members who accused him of breaking informal agreements not to sell, Sun denied that any selling took place. He insisted the transfers were only “deposit tests” involving small amounts, followed by dispersals to other addresses.
“No buying or selling was involved, so it could not possibly have any impact on the market,” Sun said.
Still, large token movements by prominent investors often trigger market unease, even without evidence of sales.
Market Impact and Broader Tensions
WLFI, which only launched this week, saw its token price plunge about 24% on Thursday before recovering to around $0.19. Much of the decline occurred before Sun’s transfers, but the incident amplified volatility and raised new questions about the project’s governance.
Sun has been one of WLFI’s most visible backers, committing $75 million to buy roughly 3 billion WLFI tokens and taking on an advisory role. He also pledged $100 million toward the TRUMP memecoin, a separate project tied to the same ecosystem.
The freeze highlights growing tension between developers seeking to protect token stability and investors concerned about fairness and decentralization. For now, WLFI’s community remains divided over whether the decision was a safeguard or an overreach.
