Justin Sun’s blacklisted WLFI wallet loses $60m as governance fears grow
A Justin Sun‑linked WLFI wallet remains blacklisted, freezing tens of millions in tokens as WLFI’s price weakens and investors question governance and “decentralized” control.
- Bubblemaps data show a Justin Sun‑linked wallet on World Liberty Financial remains blacklisted, unable to send or receive WLFI even as the token’s market value slides.
- The frozen stash has lost roughly $60m over three months, tracking WLFI’s broader downtrend rather than forced selling, while Sun still controls nearly 600m unlocked WLFI plus a large TRUMP stake.
A cryptocurrency wallet linked to entrepreneur Justin Sun remains blacklisted by World Liberty Financial’s WLFI token system, preventing the address from sending or receiving tokens, according to on-chain analytics platform Bubblemaps.
The market value of the locked holdings declined by approximately $60 million over three months, according to the analytics data. The decline corresponded with broader price weakness in WLFI (WLFI) tokens and reflected market sentiment shifts rather than forced liquidation of the frozen assets, the platform reported.
World Liberty Financial Tokens wallet loses $1m, what gives?
WLFI administrators added Sun-linked wallets to the blacklist in September following an alleged sale of WLFI tokens by Sun, according to Bubblemaps. The data showed Sun transferred approximately $1 million worth of WLFI tokens to centralized exchange HTX, representing an estimated 4.9 million tokens.
Sun continues to control nearly 600 million unlocked WLFI tokens valued at close to $135 million, according to the analytics platform. Reports estimate his total exposure at approximately $175 million, including a $100 million commitment to the TRUMP memecoin and roughly $75 million invested directly into WLFI.
WLFI serves as the governance token of World Liberty Financial, a project that positions itself as a bridge between traditional finance and decentralized finance.
WLFI began public trading on Sept. 1, 2025. Prices rose sharply in early trading before entering a downtrend, placing governance practices at the center of discussions about long-term market confidence.
Sun became the largest holder of the TRUMP memecoin and subsequently attended a dinner hosted by former President Donald Trump, where he received a “Trump Golden Torbillon” watch, raising his profile in politically linked cryptocurrency projects.
The WLFI blacklist restricts Sun’s operational capabilities by freezing tokens at the linked address and eliminating his ability to transfer or receive them, sparking debate over centralized controls within decentralized finance ecosystems.
In September, Sun criticized the freeze in public statements, saying he had contributed capital and trust to the project’s future. He characterized the token freeze as unreasonable and damaging, expressing a desire to develop alongside the team and community.
The restricted holdings have limited Sun’s flexibility during market volatility, highlighting tensions between large token holders and governance structures in decentralized finance projects.
