Tron founder Justin Sun saw his World Liberty Financial (WLFI) wallet blacklisted on Thursday after it moved 50 million WLFI tokens to the HTX exchange.
Blockchain data from Nansen and Arkham confirmed that the wallet was flagged soon after the transfer, which was valued at around $9 million. The move quickly sparked rumors that WLFI was limiting certain wallets from offloading tokens in order to stabilize prices during its first week of trading.
Responding to the speculation, Sun posted on X, clarifying that the activity was routine. According to his statement, the address was only used to conduct “exchange deposit tests” with small amounts of WLFI before spreading tokens to other addresses. He stressed that no buying or selling took place, meaning the transaction had “no possible market impact.”
Sun’s reassurance followed an earlier pledge where he said he had no intention of liquidating his WLFI allocation anytime soon. “We are not planning to sell our unlocked tokens in the near future,” he said, emphasizing his commitment to the project’s long-term goals.
A spokesperson for Sun also confirmed that discussions with the WLFI team were ongoing regarding the incident.
WLFI, a DeFi initiative backed by U.S. President Donald Trump, officially debuted on Monday. The token surged briefly to $0.32 before tumbling, losing 22% by Thursday and trading below $0.18, according to CoinMarketCap.
World Liberty Seeks to Support Token Value
The rapid decline in WLFI’s price has prompted the project to take corrective measures aimed at reducing supply. On Wednesday, 47 million tokens were burned, onchain data shows, in an effort to shrink circulating supply and put upward pressure on the price.
Even so, WLFI’s overall supply remains near 99.95 billion tokens. The team has also floated the idea of a buyback program funded by protocol fees, with all repurchased tokens permanently burned.
Despite these moves, volatility and heavy losses have weighed on investor sentiment. CoinMarketCap currently lists WLFI as one of the ten tokens facing the most bearish outlook from the market.
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