World Liberty Financial Blacklists Justin Sun’s Wallet Amid WLFI Token Selloffs

World Liberty Financial has blacklisted a wallet linked to Tron founder Justin Sun after movements of millions of dollars in WLFI tokens. Arkham confirmed that the blacklisted address belongs to Justin Sun, showing a record of the transaction on chain.

World Liberty Financial Blacklists Justin Sun after WLFI Transfers

The blacklist action came shortly after an Arkham data showed that Sun transferred $9 million worth of WLFI to another address. The flagged activity followed multiple transfers from Sun’s wallets, including deposits into the HTX exchange. Portfolio data displayed by Arkham also showed Sun holding more than $100 million in WLFI, alongside other large crypto assets. WLFI debuted with a $7 billion market cap, giving perspective on the scale of his current unlocked position.

Onchain Lens separately reported that Sun transferred 50 million WLFI, valued at $9.12 million, to a new wallet. Analysts suggested the tokens were likely bound for HTX, where Sun has previously been active. Additional data indicated he deposited over 5.28 million WLFI, worth $1.19 million, into HTX in the past two days.

A Wu Blockchain post added that an HTX-linked wallet moved around 60 million WLFI to a Binance deposit address within 32 hours. The transfer raised speculation that Sun’s WLFI holdings could be entering broader exchange circulation.

Arkham data also shows Sun currently controls about 595 million WLFI worth $107 million at current market value. This balance represents his unlocked allocation, which accounts for around 20% of his total holdings. Based on his initial purchase and unlock terms, approximately 2.4 billion WLFI remain locked under vesting, a figure consistent with on-chain estimates reported by analysts.

Sun Denies Market Impact as WLFI Drops 16%

In response, Sun dismissed the claims, saying the transactions were only routine tests and address splitting. He insisted no actual buying or selling occurred, stressing that such movements could not have affected WLFI’s market.

Data shows Sun’s involvement with WLFI. Onchain Lens posted that Sun had spent $75 million to buy 3 billion WLFI and was given 600 million WLFI as part of a token unlock. These assets put Sun among the richest holders of the WLFI token.

The blacklisting incident is not that common, as blockchain protocols are not typically designed to blacklist high-profile industry players wallets. It is an indicator that World Liberty Financial intends to keep its token ecosystem under control as WLFI trading volume continues to grow. The WLFI token also gained a Binance listing, broadening market access

According to TradingView data, WLFI has fallen over 16% in just one day and has fallen to $0.1835. It is less than 9% lower than on the week compared with the token. This means the market was less focused on the Sun action as well as the blacklist announcement. A brief recovery attempt late in the session lifted WLFI back near $0.19 before sellers regained control.