World Liberty Financial (WLFI) is defending its decision to freeze hundreds of wallets, including Tron found Justin Sun’s, saying the move was meant to protect users from phishing-related compromises, not to stifle normal trading.<\/p>\n
“WLFI only intervenes to protect users, never to silence normal activity,” the project wrote on X.<\/p>\n
We\u2019ve heard community concerns about recent wallet blacklists. Transparency first: WLFI only intervenes to protect users, never to silence normal activity. \ud83e\udd85<\/p>\n
\u2014 WLFI (@worldlibertyfi) September 5, 2025<\/a> <\/p>\n WLFI said earlier this week that 272 wallets were blacklisted, with approximately 215 of those linked to a phishing attack and 150 compromised through support channels.<\/p>\n Justin Sun’s WLFI address was frozen on Friday<\/a>, following several small \u201cdispersion test\u201d transfers between his own wallets after claiming unlocked tokens at launch, none of which were sales.<\/p>\n The outbound transfers from Sun-tagged wallets made it appear that the big-name WLFI investor was selling his tokens, but onchain data paints a different picture.<\/p>\n In a post on X<\/a>, Nansen founder Alex Svanevik pointed out that Sun’s transfers didn’t match the timeline of WLFI’s token decline.<\/p>\n Nansen data shows Justin Sun transferred 50 million WLFI worth about $9.2 million on Sept. 4 at 09:18 UTC \u2014 three to five hours after the token\u2019s steepest drop \u2014 meaning the transfer followed the crash rather than caused it.<\/p>\n Onchain data from Nansen shows a $12 million WLFI transfer from HTX to Binance by a third-party market maker.<\/p>\n The tokens were borrowed using HTX\u2019s own capital as part of a routine rebalance, but the move came after WLFI\u2019s sharpest declines and was too small to have moved the market, considering WLFI has a daily trading volume of over $700 million.<\/p>\n Once deposited on Binance, it is impossible to determine whether the tokens were sold or simply held.<\/p>\n Market participants instead point to broad shorting and dumping of WLFI through market makers and trading desks across several exchanges as the real driver of the crash.<\/p>\n Onchain records back this view: a transfer from BitGo to Flowdesk flagged by Nansen, coincided with the start of WLFI\u2019s slide and has become a key datapoint in explaining the sell-off.<\/p>\n Meanwhile, WLFI\u2019s decision to freeze funds linked to the crash set off nervous chatter among whales, market makers, and other trading desks that their tokens could be frozen by literal fiat.<\/p>\n \u201cIf they can do it to Sun, who\u2019s next?\u201d is how a person familiar with conversations among large market participants paraphrased it when speaking to CoinDesk.<\/p>\n WLFI is currently trading for $0.18, according to CoinGecko<\/a>. It’s down 40% since listing.<\/p>\n