Justin Sun blacklisted after a brutal drop of WLFI token

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.

Justin Sun, strategic ally turned pariah in the Trump universe

In November 2024, Justin Sun invested 30 million dollars in WLFI, a crypto asset listed on Binance, Bybit and OKX 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.

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 the unlocking 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%.

The protocol reacted by blacklisting Sun’s address, freezing between 540 and 595 million unlocked tokens, over 100 million dollars, and 2.4 billion locked tokens.

For the one who embodied the crypto guarantor of the Trump project, the irony is biting: from key investor, he becomes persona non grata.

Narrative war: Justin Sun against World Liberty Financial (WLFI)

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: ” 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“.

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.

But despite this defense, accusations persist and the matter worsens, deepening the rift between Sun and his former Trump allies.

The crypto community between suspicion and counterattack

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.

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.

Key figures of the WLFI crisis

• The WLFI token dropped 61% after its launch, going from $0.47 to $0.18 ;
• Justin Sun still holds nearly 700 million dollars in WLFI tokens, mostly locked ;
• 595 million unlocked tokens (≈107M$) were frozen by the protocol ;
• Investors who entered above $0.33 already show −45% losses.

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.

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 temporarily give up his political party project to avoid a public blaze. As you can see, in business as in politics, affinities hang by a thread.