A cryptocurrency wallet linked to Tron founder Justin Sun has remained frozen on the World Liberty Financial (WLFI) network for months, and its value has taken a major hit. According to on-chain analytics firm Bubblemaps, the blacklisted wallet has seen roughly $60 million wiped off its value over the past three months, raising fresh questions about governance, decentralization, and investor confidence in the Trump-backed DeFi project.
The wallet in question is unable to send or receive WLFI tokens due to restrictions imposed by WLFI administrators. Bubblemaps data shows that the losses were not caused by forced selling or liquidations. Instead, the decline closely mirrors WLFI’s broader price downturn as market sentiment around the token weakened.
WLFI administrators reportedly blacklisted Sun-linked wallets in September, following allegations that Sun sold part of his WLFI holdings. On-chain data indicates that around $1 million worth of WLFI tokens, equivalent to approximately 4.9 million tokens, were transferred from a Sun-associated wallet to the centralized exchange HTX. Shortly after, the blacklist was applied.
Despite the freeze, Sun remains one of WLFI’s largest stakeholders. Analytics data suggests he still controls nearly 600 million unlocked WLFI tokens, currently valued at about $135 million. His overall exposure to the ecosystem is estimated at roughly $175 million, which includes a $100 million commitment to the TRUMP memecoin and around $75 million invested directly into WLFI.
WLFI is positioned as the governance token of World Liberty Financial, a project that claims to connect traditional finance with decentralized finance. The platform raised more than $550 million during its presale, according to official statements, and began public trading on Sept. 1, 2025. After an initial surge, the token entered a sustained downtrend, placing the spotlight on its governance framework.
The blacklist has fueled debate across the crypto community. Critics argue that the ability to freeze wallets reflects centralized “kill switches” that clash with the ideals of decentralized finance. Supporters counter that such measures are sometimes necessary to protect projects from market manipulation.
Sun has publicly condemned the freeze, calling it unreasonable and harmful. In September statements, he said he had contributed both capital and trust to the project and expressed disappointment at being locked out. He added that he wanted to continue building alongside the WLFI team and its community.
Beyond WLFI, Sun’s involvement in politically linked crypto projects has drawn attention. After becoming the largest holder of the TRUMP memecoin, he attended a dinner hosted by former U.S. President Donald Trump, where he received a “Trump Golden Torbillon” watch — a moment that further boosted his public profile.
As WLFI’s price struggles and Sun’s frozen holdings remain inaccessible, the situation highlights a growing tension in crypto: how decentralized a project truly is when governance decisions can freeze millions with a single switch. For investors, the episode has become a real-world test of trust, transparency, and control in modern DeFi systems.
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