World Liberty Financial (WLFI) has taken the unusual step of blacklisting a crypto wallet tied to Tron founder Justin Sun, following large on-chain transactions involving millions of dollars’ worth of WLFI tokens.
Blockchain analytics platform Arkham confirmed that the wallet in question belongs to Sun, showing that he had shifted $9 million in WLFI to another address. This movement came on the heels of several other transfers, including deposits into HTX (formerly Huobi).
Arkham data also revealed Sun controls over $100 million in unlocked WLFI, with his overall holdings placing him among the largest individual investors in the project.
Additional reporting from Onchain Lens highlighted that Sun had redirected 50 million WLFI (valued at $9.1 million) to a fresh address, raising speculation that the funds were destined for HTX. In fact, Sun has already deposited more than 5 million WLFI to HTX within the past 48 hours. Wu Blockchain separately noted that an HTX wallet moved 60 million WLFI to Binance in just over a day, fueling concerns that his allocations may soon add to exchange liquidity.
At current prices, Sun’s known balance stands at roughly 595 million WLFI worth $107 million — nearly 20% of his unlocked stash. A far larger share, estimated at 2.4 billion WLFI, remains locked under vesting agreements. Historical on-chain data shows he acquired a major position by spending $75 million for 3 billion WLFI, with an additional 600 million tokens granted during unlock events.
Sun pushed back against suggestions that these transfers triggered selling pressure, saying the transactions were only technical tests and portfolio rebalancing, not sales. Despite this defense, WLFI’s price fell more than 16% in a single day, sliding to around $0.183. A small bounce briefly lifted it back near $0.19, but sellers quickly returned.
The move to blacklist a high-profile wallet is unusual in crypto, where censorship resistance is often a core principle. Still, World Liberty Financial’s decision highlights its intent to retain strict oversight of WLFI’s token economy. With trading volumes rising and Binance now listing the asset, market watchers say the protocol is signaling it won’t shy away from policing even its most prominent stakeholders.
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Source: https://coindoo.com/wlfi-price-hit-hard-as-justin-sun-wallet-gets-blacklisted/