Tron Founder Justin Sun Responds to World Liberty Over WLFI Token Freeze

Key Insights:

• Justin Sun made a request to World Liberty to release his WLFI token.
• World Liberty froze 540M WLFI tokens linked to Justin Sun after $9M transfers.
• WLFI price has dropped since launch, trading near $0.18 at press time.

Tron’s Justin Sun opposed World Liberty Financial after the Trump-backed initiative froze 540 million unlocked WLFI tokens tied to his wallet. The freeze prevented him from transferring tokens acquired as part of his advisory role. This raised new questions about governance and investor rights within the Trump-backed decentralized finance initiative.

WLFI Blacklists Justin Sun Wallet After Token Transfers

World Liberty Financial blacklisted Sun’s wallet on Thursday after an address linked to him moved WLFI tokens on the Ethereum blockchain. According to Arkham Intelligence data, the transactions amounted to about $9 million worth of tokens.

While the exact reasoning remains unclear, the project’s leadership moved to block transfers despite Sun being among its earliest and most visible backers. The WLFI team’s decision sparked debate as it occurred during the token’s volatile first week of trading on major exchanges, including Binance, OKX, and Gate.

Tron Founder Sun Calls Freeze “Unreasonable”

In a series of posts on X, Sun urged World Liberty Financial to respect investor rights and unfreeze his holdings. He argued that unilateral freezes damage trust in the project and create unnecessary uncertainty for investors.

Sun stated that his wallet activity consisted of “generic exchange deposit tests with very small amounts” and did not involve buying or selling. He stressed that these movements could not have influenced market pricing and should not have prompted restrictions on his address.

Early Investment and Advisory Role in WLFI

In late 2024, Sun became an advisor to World Liberty Financial and initially bought $30 million of WLFI tokens. Public disclosures also show he later expanded his holdings, committing tens of millions more toward both WLFI and Donald Trump’s TRUMP memecoin.

His role as advisor positioned him as a visible supporter of the project’s expansion strategy. In January of this year, Sun was invited to attend a gala dinner held by President Donald Trump, which demonstrated his close attachment to political and financial projects.

The financial and public role of Tron Founder made him a significant stakeholder of WLFI ecosystem.

WLFI Token Launch Week Sees Price Swings

WLFI token started trading on September 1 at $0.46. Sharp selling on exchanges drove the price down to $0.25 within two hours. According to CoinMarketCap, WLFI has since fallen further, trading just above $0.18 at press time, reflecting an 18% drop since launch.

Analysts warn that selling pressure may persist, and governance issues are now added to the market weakness. As critics note, although the WLFI news is branded as a decentralized platform, the leadership still has the unilateral power to freeze wallets. These new WLFI reports cast doubt on the claims of decentralization.

Political Backing and Market Strategy

President Trump co-founded World Liberty Financial with his three sons and was framed as a politically motivated decentralized finance brand. The high-profile endorsements of the project and its combination of blockchain adoption with political identity were some of the aspects that attracted attention.

More so, millions of dollars worth of Tron TRX token were acquired by World Liberty in January, another move connecting the project with the blockchain ecosystem of Sun.

However, the current wallet freeze caused tension in the relationship with Sun stressing that fairness and transparency should be core to establishing a sustainable financial brand.

Sun’s scandal of the wallet further brings scrutiny to the launch week of WLFI. Investors are now tracking the way the project has resolved governance issues, such as whether the Sun tokens will be unfrozen.

Meanwhile, most recently, Eric Trump predicted that Bitcoin could reach $1 million, citing surging institutional and retail demand. He highlighted growing ETF inflows and corporate treasury purchases as key drivers. His projection adds to other bullish forecasts from figures like Cathie Wood, Michael Saylor, and BlackRock.