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The Donald Trump-backed DeFi project claimed huge exchange dumping was causing the $WLFI price crash.
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On-chain data shows Sun has transferred $9 million but affected his entire $WLFI holdings.
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Sun had previously stated that he is willing to hold $WLFI for a long period despite earning a 100x return on investment.
World Liberty Financial, a fast-growing DeFi project backed by U.S. President Donald Trump, has blacklisted one of its whale investors to reverse the $WLFI market crash. According to on-chain data, World Liberty Financial blacklisted Justin Sun, the founder of Tron (TRX), after making a transfer of $9 million in $WLFI.
As a result, Sun’s $WLFI trove, consisting of $540 million in unlocked and $2.4 billion in locked assets, was frozen. The World Liberty Financial team noted that they believe Sun and his exchanges have been manipulating the $WLFI price action, possibly to buy low.
Previously, Sun had pledged to hold his $WLFI tokens for a long time in addition to his support for the USD1 stablecoins. At the time of this writing, Sun had not issued a statement regarding his frozen $WLFI holdings.
$WLFI Price Rebounds on Sun’s Blacklisted Accounts
Following the news of Sun’s account blacklist, $WLFI price rebounded from a range low of about $0.167 to trade about $0.18 on Thursday during the mid North American session. The mid-cap altcoin, with a fully diluted valuation of about $18 billion and a market cap of around $4.9 billion, has dropped over 40% in the past few days, signaling a potential capitulation akin to the Official Trump (TRUMP) meme.
World Liberty Financial $WLFI lost $0.20 as support! Now, $0.15 and $0.10 are in play. pic.twitter.com/olDZpbpcVJ
— Ali (@ali_charts) September 4, 2025
Earlier on Thursday, crypto analyst Ali Martinez had cautioned $WLFI buyers that the altcoin has lost a crucial support level around 20 cents, thus likely to fall towards 10 cents soon. Meanwhile, worth noting that ALT5 Sigma announced on Thursday that it holds 7.28 billion $WLFI valued at around $1.31 billion.