World

TRUMP

Liberty

World Liberty Financial

<p>In business, a friendship can turn into mistrust overnight. Justin Sun is bitterly experiencing this. He, who had shown himself close to the Trump clan, even claiming TRUMP memecoins to show his loyalty, now finds himself in turmoil. His involvement in World Liberty Financial (WLFI), a crypto project supported by the Trump family, turns into a dramatic saga. From displayed support to ostracism, it only took a price collapse and public accusations to tip this fragile balance.</p>
<div class="in-brief">
 <div class="in-brief--container">
  <span></span> <span></span>
  <h2 class="in-brief--title" id="in-brief">In brief</h2>
  <ul>
   <li>The WLFI token dropped 61% within a few days after its official launch.</li>
   <li>Justin Sun’s address was blacklisted, blocking about 595 million unlocked tokens.</li>
   <li>Sun claims his transactions were only minor tests, without market impact.</li>
   <li>The crypto community flares up, between accusations of manipulation and defense of simple technical transfers.</li>
  </ul>
 </div>
</div>
<h2 id="h-justin-sun-strategic-ally-turned-pariah-in-the-trump-universe">Justin Sun, strategic ally turned pariah in the Trump universe</h2>
<p>In November 2024, Justin Sun invested 30 million dollars in WLFI, <a href="https://www.cointribune.com/en/binance-bybit-okx-wlfi-establishes-itself-from-its-first-listing/" target="_blank" rel="noopener noreferrer nofollow">a crypto asset listed on Binance, Bybit and OKX</a> for a few days. A few months later, his holding reached 75 million, then nearly 700 million in tokens on the eve of the launch.</p>
<div class="my-4">
 <div class="ads ">
 </div>
</div>
<p>It’s a strategic role: Sun is seen as an ally of the Trump clan, even praising the presidential vision on digital asset regulation. However, from <a href="https://www.cointribune.com/en/controversy-as-trump-unlocks-billions-in-wlfi-tokens/" target="_blank" rel="noopener noreferrer nofollow">the unlocking</a> in early September, the dream turns into a nightmare. WLFI rose to 0.47 dollars, then collapsed to 0.18 dollars in a few days, a drop of 61%.</p>
<div class="tweet">
 <blockquote class="twitter-tweet">
  <a href="https://twitter.com/0xNonceSense/status/1963654615947514277?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow"></a>
 </blockquote>
</div>
<p>The protocol reacted <a href="https://www.coindesk.com/tech/2025/09/04/world-liberty-financial-blacklists-justin-sun-s-address-with-usd107m-wlfi" target="_blank" rel="noopener noreferrer nofollow">by blacklisting Sun’s address</a>, freezing between 540 and 595 million unlocked tokens, over 100 million dollars, and 2.4 billion locked tokens.</p>
<p>For the one who embodied the crypto guarantor of the Trump project, the irony is biting: from key investor, he becomes persona non grata.</p>
<h2 id="h-narrative-war-justin-sun-against-world-liberty-financial-wlfi">Narrative war: Justin Sun against World Liberty Financial (WLFI)</h2>
<p>WLFI officials accuse a crypto exchange of manipulating the tokens and suspect Sun of dubious activities. In response, the Tron founder speaks directly on X: ” <em>Our address only performed a few deposit tests on an exchange platform, with very small amounts, then proceeded to address dispersion. This involved no buying or selling, so it is impossible that these operations had any market impact</em>“.</p>
<div class="tweet">
 <blockquote class="twitter-tweet">
  <a href="https://twitter.com/justinsuntron/status/1963660907017605191?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow"></a>
 </blockquote>
</div>
<p>In a second message, Justin Sun publicly asked the WLFI team to lift the freeze on his tokens in order to move towards a common success. He defended the idea that a true financial brand must rely on solid principles: fairness, transparency, and trust. For him, freezing investors’ assets amounts to taking dangerous unilateral measures, which violate the legitimate rights of holders and risk broadly undermining trust in World Liberty Financial.</p>
<p>But despite this defense, accusations persist and the matter worsens, deepening the rift between Sun and his former Trump allies.</p>
<h2 id="h-the-crypto-community-between-suspicion-and-counterattack">The crypto community between suspicion and counterattack</h2>
<p>The issue takes another dimension on social networks. Some accuse Sun of bypassing his locks via “20% APY” offers that would encourage users to deposit their WLFI, then quietly resold on Huobi.</p>
<div class="tweet">
 <blockquote class="twitter-tweet">
  <a href="https://twitter.com/stone_meta_/status/1963661793299153029?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow"></a>
 </blockquote>
</div>
<p>Others go as far as depicting him as an “infiltrated agent” of a foreign state. On the opposite side, blockchain analysts like Bubblemaps downplay, believing the observed transfers (up to 9 million dollars) resemble internal movements rather than sales.</p>
<div class="my-4">
 <div class="ads ">
 </div>
</div>
<h3 id="h-key-figures-of-the-wlfi-crisis">Key figures of the WLFI crisis</h3>
<ul>
 <li>The WLFI token dropped 61% after its launch, going from $0.47 to $0.18 ;</li>
 <li>Justin Sun still holds nearly 700 million dollars in WLFI tokens, mostly locked ;</li>
 <li>595 million unlocked tokens (≈107M$) were frozen by the protocol ;</li>
 <li>Investors who entered above $0.33 already show −45% losses.</li>
</ul>
<p>Amid these conflicting narratives, one fact stands out: early investors like Sun remain largely profitable, while small holders pay the price. The promise of decentralized finance led by WLFI has turned into a narrative battlefield, where Trump’s image and Sun’s reputation find themselves caught in a storm of suspicion and grudges.</p>
<div class="affiliate-button">
 <a href="https://bitpanda.pxf.io/c/2801338/1632019/15871" target="_blank" rel="noopener noreferrer nofollow">Your 1st cryptos with Bitpanda</a> <a href="https://www.cointribune.com/en/sponsored-content/" target="_blank" rel="noopener noreferrer nofollow">This link uses an affiliate program.</a>
</div>
<p>Justin Sun’s story reminds that alliances in politics and crypto are often fragile. Elon Musk knows this well: once close to Donald Trump, he ended up squabbling with him through tweets. This showdown even forced Tesla’s CEO to <a href="https://www.cointribune.com/en/elon-musk-halts-project-under-political-pressure/" target="_blank" rel="noopener noreferrer nofollow">temporarily give up his political party project</a> to avoid a public blaze. As you can see, in business as in politics, affinities hang by a thread.</p>

Justin Sun blacklisted after a brutal drop of WLFI token

Table of Contents

Cointribune EN

Other articles published on Sep 5, 2025

Join our free newsletter for daily crypto updates!