“‘Rug pull’ targeting the Trump family? Justin Sun blacklisted by WLFI!”

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Is a high-profile cryptocurrency experiment turning into a public internal conflict?

The crypto project World Liberty Financial (WLFI), endorsed by the Trump family, after a turbulent launch, has blacklisted the wallet address of one of its biggest supporters—Justin Sun, founder of Tron—further damaging the already fragile market confidence.

On Thursday, according to on-chain data, WLFI officially blacklisted one of Justin Sun’s wallet addresses, directly locking over $100 million worth of unlocked WLFI tokens in that address, as well as billions more tokens still in lock-up.

The dramatic trigger for this event was a transfer by Justin Sun. According to Arkham Intelligence data, before being blacklisted, the address transferred about $9 million worth of WLFI tokens. Sun responded that his address only conducted a “few very small deposit test transactions for exchanges” and address sharding, with no buying or selling involved, so it could not have influenced the market.

Justin Sun blacklisted after tens of millions transfer

The conflict between Justin Sun and the WLFI project became fully public on Thursday. Although World Liberty did not specify the exact reason for the blacklisting, the timing was highly sensitive. According to on-chain data, after Justin Sun’s address transferred 50 million WLFI tokens 14 hours prior, the project team quickly acted.

According to Arkham data, the frozen address still holds 545 million WLFI, worth about $102.3 million at current prices, plus another 2.4 billion locked tokens.

As an important early supporter, Justin Sun was appointed an advisor to World Liberty and purchased $75 million worth of WLFI tokens. He also promised to buy $100 million of Trump-related TRUMP Memecoins, for which he was invited to a dinner hosted by President Trump.

Regarding the transfer, Justin Sun explained on social platform X that his actions would not impact the market. But the market was clearly not fully convinced.

WLFI token price had already started dropping hours before Sun’s transfer, at one point plunging 24% on Thursday.

Unconfirmed user speculation: an “escape plan”?

Amid market turmoil, an unverified user theory circulated in the community, claiming Justin Sun may have circumvented market monitoring through complex maneuvers. The commentary stated that Sun first posted on social media not to dump and stabilized sentiment, then launched a 20% APY deposit campaign on his exchange HTX to attract retail investors, then channeled user deposits through multiple addresses to Binance to sell, and finally used tokens from his own wallet to pay HTX users back.

The analysis concluded that in this way, Justin Sun’s wallet address would not appear to be directly involved in sell-offs, but the funds may already be secured by Sun.

Price collapsed at launch, circulating supply controversy shakes confidence

In fact, even before blacklisting Justin Sun, the WLFI project had been heavily criticized for its chaotic launch. The token began trading this Monday at an opening price of $0.32, but quickly dropped to a low of $0.21, with the current price stable around $0.18—a significant drop from the issue price.

The core of shaken market confidence lies in the circulating supply, which was disclosed by the project team at the last minute before issuance. According to media reports, World Liberty announced on September 3 that 25 billion tokens would enter circulation—a number five times higher than the 5 billion many investors had expected.

This triggered strong dissatisfaction among investors, many of whom questioned the data transparency and the ambiguity of “early supporter” status in the project’s governance forum.

AirdropAlert.com founder Morten Christensen commented: “Ideally, day one should go very well. Unfortunately, miscommunication by the team before launch, together with negative sentiment on X, turned the first day red (referring to a price drop).”

To further compound the confusion, online traders noticed that estimations of circulating supply ranged from 3% to 25% within hours after launch, intensifying selling pressure.

Risk Warning and DisclaimerMarkets have risks, investments need caution. This article does not constitute personal investment advice, nor does it consider the unique investment objectives, financial situation, or needs of any individual user. Users should consider whether any opinions, views, or conclusions in this article are suitable for their individual circumstances. Investment based on this is at your own risk. ```