- Justin Sun claims token tests only, but WLFI freezes $107M after $9M movement triggers alarms.
- WLFI price drops 50% in a week, with Sun-linked wallets moving millions across exchanges.
Justin Sun, founder of the Tron blockchain, is asking World Liberty Financial (WLFI) to unlock his wallets after they were frozen due to recent token activity. The freeze came shortly after Sun moved millions of WLFI tokens between addresses, raising concerns from the project’s team.
Blockchain data shows that Sun transferred $9 million worth of WLFI to a new wallet, followed by deposits of over 5 million tokens into the HTX exchange. Arkham data links the addresses to Sun, showing he holds over $107 million in WLFI. These movements happened days after WLFI’s price began to fall sharply.
Meanwhile, the price of WLFI has fallen more than 50% in one week. On September 4, the token dropped 16% in a single day, hitting $0.18. A short recovery pushed it near $0.19, but sellers quickly returned.
While World Liberty Financial has not released a full statement, the wallet freeze was confirmed. This follows speculation that Sun may have moved large amounts of tokens into exchange wallets, possibly preparing to sell. On-chain data shows one of the wallets sent around 60 million WLFI to a Binance deposit address.
Sun Denies Selling, Calls for Fairness
Sun has denied selling any WLFI and claims the transfers were only small deposit tests and wallet splits.
“Our address only carried out a few general exchange deposit tests with very small amounts,” he said. “No buying or selling was involved, so it could not possibly have any impact on the market.”
He also took to social media, asking the team behind WLFI to unlock his tokens.
“Tokens are sacred and inviolable,” he wrote. “This should be the most basic value of any blockchain. I call on the team to respect these principles, unlock my tokens, and let’s move forward together toward the success of World Liberty Financials.”
Sun added that freezing investor wallets without cause could damage trust in the project.
Sun’s Early Involvement in WLFI
Sun was one of the early investors in WLFI. Blockchain data shows he bought 3 billion WLFI tokens for $75 million and later received 600 million through a token unlock. He currently holds 595 million tokens in unlocked wallets, with more under vesting.
Despite public claims of innocence, some members of the crypto community have accused him of misleading tactics. These include launching a 20% APY yield program and a WLFI token burn before allegedly moving tokens to exchanges.
Sun has responded by saying, “I am innocent,” and continues to insist that none of the token activity was tied to market selling.
I am innocent. https://t.co/Vg0S0PT34z
— H.E. Justin Sun 👨🚀 (Astronaut Version) (@justinsuntron) September 5, 2025
WLFI Team Yet to Respond in Detail
The WLFI has not really explained the reason behind freezing the wallets until they went on to affirm that the tokens were transferred. The freeze here is unusual since mostly crypto projects stay away from direct interference with investor accounts, especially the high-profile ones.
Recently, WLFI got listed on Binance, thereby boosting visibility and trading volume. But this incident has posed questions on the management of large holders within the project and their resolution or opposed issues.
On-chain trackers and independent analysts have been watching the wallet activity associated with Sun, but no undeniable evidence has appeared pointing to direct sales that would have caused the price to drop.
