- Tron founder calls blacklisting violation of blockchain principles and investor rights
- WLFI froze Sun’s address after $9 million transfer triggered selling suspicions
- Blockchain analysts tracked $10 million in CEX deposits over three-day period
Tron founder Justin Sun has publicly demanded that Trump family-linked cryptocurrency project World Liberty Financial unfreeze his token allocation following Thursday’s blacklisting action. Sun’s wallet address was restricted after blockchain monitoring services flagged suspicious trading activity that contradicted his earlier long-term holding commitments.
When Nansen and Arkham Intelligence discovered a $9 million WLFI token transfer from Sun’s address, they became concerned about possible selling pressure, which led to the freeze. WLFI administrators responded by blacklisting the address, preventing further token movements and effectively locking Sun’s remaining allocation.
Sun Claims Investor Rights Violation
Sun characterized the blacklisting as an “unreasonable” action that violates fundamental blockchain principles and investor protections. He argued that freezing tokens contradicts decentralized technology values and could damage broader confidence in the World Liberty Financial project.
According to the founder of Tron, “tokens are sacred and inviolable” and need to be the primary feature that sets blockchain systems apart from conventional financial institutions. Sun urged WLFI management to lift the ban and allow him to access his pre-sale investment again.
Sun had positioned himself among the earliest investors in the WLFI pre-sale, publicly stating intentions to hold tokens long-term rather than pursuing quick profits. The project had previously highlighted Sun’s commitment, noting his plans to create yield opportunities on HTX exchange for WLFI deposits.
Data Shows Sun Moving WLFI
However, blockchain analysis firm Bubblemaps contradicted Sun’s holding narrative by tracking $10 million in centralized exchange deposits over a three-day period. The data showed Sun moving WLFI tokens to HTX shortly before the blacklisting action, suggesting preparation for potential selling activity.
Cryptocurrency analyst Quinten François from weRate criticized Sun’s actions, suggesting the Tron founder may have used HTX’s 20% APY offering to attract user deposits while simultaneously liquidating his own unvested position. François argued that such behavior would justify account freezing measures.
The dispute highlights tensions between investor autonomy and project protection mechanisms in cryptocurrency pre-sales. While Sun advocates for unrestricted token access based on decentralization principles, WLFI appears to prioritize protecting token value against premature selling pressure.