Justin Sun Claims Trump-Backed WLFI Froze His 2.9B Tokens

TL;DR

• Token Freeze: The WLFI crypto project, which is linked to Donald Trump, has frozen 2.9 billion tokens belonging to crypto figure Justin Sun.
• Controversy: WLFI claims the freeze was a response to suspicious trading by Justin Sun that allegedly caused a 50% price drop. Sun denies the claims, asserting the transfers were just small tests.
• Community Divide: The dispute has caused a division within the WLFI community, with some supporting the project’s decision to protect its stability, while others condemn the centralized action.

Prominent crypto figure Justin Sun has publicly accused World Liberty Financial (WLFI), a project with ties to Donald Trump, of freezing 2.9 billion of his tokens. This move occurs during a heated dispute regarding a reported $75 million investment that Sun made in the project, which he asserts makes him WLFI’s biggest external supporter.

The token freeze has sparked a heated debate within the crypto community, raising fundamental questions about the centralization of power in projects that espouse decentralization. Justin Sun’s public statements on the matter assert that WLFI’s action is both unjust and a clear violation of the core principles of blockchain technology, such as trust and transparency, and he is demanding that his tokens be unlocked immediately.

To the World Liberty Financials team and the global community,

As one of the early major investors in World Liberty Financials, I have contributed not only capital but also my trust and support for the future of this project. My goal has always been to grow alongside the team…

— H.E. Justin Sun 👨‍🚀 (Astronaut Version) (@justinsuntron) September 5, 2025

Allegations of Market Manipulation

The controversy is rooted in WLFI’s counter-claims that Sun’s tokens were implicated in suspicious trading activities. According to WLFI, on-chain data reportedly showed Sun’s wallet transferring millions of dollars worth of WLFI tokens to various exchanges just before the token’s price experienced a precipitous drop. This alleged sell-off is said to have caused a nearly 50% plunge in the token’s value, creating significant losses for many in the community.

WLFI leadership has framed the token freeze as a necessary defensive maneuver to protect the project’s integrity and its investors from what they perceive as deliberate market manipulation. This narrative places Sun at the center of the token’s price crash, a claim he vehemently denies.

Sun’s Defense and Community Reaction

In reply to WLFI’s claims, Justin Sun has provided a firm counterargument. He maintains that the transfers in question were not sales but merely minor “deposit tests” to exchanges, intended to ensure liquidity and functionality. Sun’s camp argues that these small-scale transactions could not have single-handedly triggered such a dramatic market downturn.

The dispute has created a sharp and visible divide within the WLFI community itself. One faction supports WLFI’s swift action, viewing it as a pragmatic measure to safeguard the project’s future. They argue that protecting the token’s stability from potential manipulation is paramount, even if it requires a centralized decision.