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Highlights
- World Liberty Financial, the Trump-backed crypto project, blocked Justin Sun’s wallet after he moved $9 million worth of WLFI tokens to his HTX exchange.
- In response, Sun vowed to buy $10M in ALTS and $10M in WLFI, despite being one of WLFI’s largest investors with a $75M stake.
- The dispute comes as WLFI trades down 40% since launch, fueling speculation that insiders and early investors may be cashing out
Justin Sun Justin Justin Sun responded to World Liberty Financial freezing his wallet by promising to purchase $20 million in tokens.
The dispute unfolds as WLFI faces a 40% decline since its launch, raising concerns over investor confidence.
Wallet Freeze Sparks Investor Rights Clash
World Liberty Financial (WLFI), the Trump-backed crypto venture, has blocked Justin Sun’s wallet after he transferred $9 million worth of WLFI tokens to his HTX exchange. The decision froze 540 million unlocked and 2.4 billion locked WLFI tokens, worth more than $3 billion, leaving one of the project’s largest investors in open conflict with its leadership.
In response, the Tron founder published an open letter and took to X on Friday, describing the freeze as “unreasonable” and claiming that tokens are “sacred and inviolable.” He argued that unilateral freezes violated “the legitimate rights of investors” and risked undermining confidence in the project.
Justin Sun Commits $20M to Reaffirm Confidence in WLFI
After World Liberty Financial (WLFI) froze his wallet, Justin Sun responded with a bold countermeasure. The Tron founder announced he will purchase $10 million worth of ALTS and $10 million in WLFI tokens, a pointer to his continued faith in the Trump-affiliated crypto project despite the dispute.
Sun emphasised his long-term commitment, noting that his $75 million stake already makes him one of WLFI’s largest backers. By pledging an additional $20 million, “We believe U.S.-listed crypto stocks are an undervalued opportunity. I will market buy $10 million worth of ALTS and $10 million worth of WLFI,” he wrote in a post via his X handle tagging the Trump family. His announcement sought to signal continued commitment to both WLFI and ALTS, the Nasdaq-listed ticker for Alt5 Sigma, which recently launched a $1.5 billion WLFI treasury strategy.
His move sparked debate across the crypto community. Supporters argue the buy demonstrates confidence in WLFI’s future, while critics view it as a calculated attempt to mitigate reputational damage after the wallet block. Still, the pledge underscores Sun’s readiness to put substantial capital behind WLFI at a moment of market scepticism.
Sun Denies Dump Allegations Amid Market Drop
WLFI’s decision to blacklist Sun’s wallet came after on-chain trackers flagged several large token transfers, including a $9 million move to HTX. Critics argued that Sun was offloading tokens into exchanges after WLFI’s Binance listing hype, contributing to the token’s recent collapse. However, Sun dismissed those allegations and described the actions as Unreasonable
“Our address only carried out a few general exchange deposit tests with very small amounts, followed by an address dispersion. No buying or selling was involved, so it could not possibly have any impact on the market,” he appealed via his official X handle
Despite mounting criticism from parts of the crypto community, which accused him of misleading investors with token burns and yield promises, Sun reiterated that he remains one of WLFI’s strongest backers. His $75 million initial purchase during the token sale and ongoing public pledges underscore that position.
WLFI Faces Selloff Pressure Despite High-Profile Backing
The controversy adds to growing pressure on WLFI, which has shed 40% of its market value since its launch last month. The token, which debuted at an $8.6 billion valuation, now trades near $0.18, according to CoinMarketcap
As reported by CoinGape, the World Liberty Financial wallet block was in response to Sun allegedly selling some of his WLFI, contributing to the token’s price drop. WLFI’s leadership has not publicly confirmed the reasoning behind the freeze and did not respond to media requests for comment.
The project, launched with strong ties to Donald Trump, allocated 22.5 billion WLFI tokens to the former U.S. president through one of his companies. The debut added more than $4 billion to Trump’s reported paper wealth, surpassing the value of his real estate portfolio. But that early headline-grabbing moment has since given way to investor anxiety.
Sun, meanwhile, continues to stress that he has “no plans” to sell WLFI holdings. His latest $20 million pledge — $10 million for WLFI tokens and $10 million for ALTS shares — was presented as proof of his alignment with the project’s long-term growth. Yet market observers caution that the dispute has already shaken investor confidence. Blocking wallets, they say, is a highly unusual move in decentralised finance and risks deterring institutional and retail backers alike.
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