World Liberty Financial (WLFI) on Sep. 4, 2025 blacklisted a blockchain address linked to Tron founder Justin Sun, preventing transfers from that account. Arkham Intelligence data shows the block affects about 595 million unlocked WLFI tokens — roughly $107 million at current prices.
The blacklist came after several outbound WLFI transfers tied to the address, including a move worth about $9 million. Sun posted on X (translated from Chinese) that the address only ran “generic exchange deposit tests” and created dispersal addresses without any buying or selling, arguing the activity could not have impacted the market.
Sun is a major backer of WLFI. He first joined the project as an adviser with a ~$30 million token purchase in late 2024, and by mid‑2025 his exposure was reported to include nearly $700 million in WLFI — most of it still vesting-locked. The protocol has increased ties to the Tron ecosystem, adding TRX to its treasury and planning to launch a USD1 stablecoin on Tron.
The market reacted sharply: WLFI fell about 20% in 24 hours and is down roughly 42% since trading began on Sept. 1. Beyond the immediate price impact, the incident spotlights governance and centralization concerns when projects retain the power to freeze on‑chain balances.
What to watch next: whether WLFI’s team provides a public governance rationale or reverses the block, how exchanges respond, and whether regulators take interest. For traders and holders, this episode highlights liquidity, custodial and governance risks tied to new token launches and the potential for rapid volatility.
Source: CoinDesk. Read the original coverage for full details.