'If They Can Do It to Sun, Who's Next?' Insiders React as WLFI Claims Wallet Freezes Were for User Protection
World Liberty Financial justifies the freezing of wallets, including Justin Sun's, claiming it was necessary to counter phishing threats, not to hinder normal trading.
World Liberty Financial (WLFI) stands by its choice to freeze numerous wallets, including those owned by Tron founder Justin Sun. They state this measure was taken to shield users from phishing attacks rather than suppress regular trading.
Key Takeaways:
- WLFI blacklisted 272 wallets, with 215 tied to a phishing incident.
- Critically, on-chain data indicates that Justin Sun’s wallet activities followed WLFI’s token decline rather than preceding it.
- Observers attribute WLFI’s price drop to extensive market shorting and not singular actions by investors.
“WLFI only intervenes to protect users, never to silence normal activity,” WLFI asserted on X.
“We’ve heard community concerns about recent wallet blacklists. Transparency first: WLFI only intervenes to protect users, never to silence normal activity.” — WLFI (@worldlibertyfi) Sept 5, 2025
Previously, Justin Sun’s WLFI wallet faced freezing actions shortly after executing what were described as transient transfers among his wallets—activities misrepresented as asset liquidations.
On Sept. 4, data revealed Sun’s subsequent transfer of over 50 million WLFI tokens, valued around $9.2 million, occurred late after the token’s notable drop, contradicting the premise that he contributed to the price fall.
Thus, market analysis suggests that WLFI’s depreciation stems predominantly from opportunistic shorting behavior instead of individual actions such as Sun’s.
Amid this turbulence, equity participants have raised concerns that WLFI could execute similar wallet freezes on other accounts, igniting speculation among traders and market makers about their asset’s security.
Furthermore, WLFI’s current valuation stands at $0.18, reflecting a 40% decline since its launch.
