Justin Sun’s WLFI wallet blacklisted after $9M token transfer

Tron founder Justin Sun’s World Liberty Financial ($WLFI) token address was blacklisted on Thursday after transferring 50 million $WLFI tokens to crypto exchange HTX.

Onchain data from Nansen and Arkham shows the address was flagged shortly after a $9 million transaction. The blacklisting fueled speculation that $WLFI was restricting certain users from selling tokens and pressuring prices during the first week of public trading.

Cointelegraph reached out to Sun’s team for confirmation but had not received a response by time of publication.

On Thursday, Sun responded to speculation in an X thread, saying in a translated post that his address had only carried out a few routine exchange deposit tests with very small amounts of $WLFI tokens before creating address dispersion.

He emphasized that the activity did not involve any buying or selling and “could not possibly have any impact on the market.”

Source: Nansen

The restriction followed Sun’s earlier statement that he “will not be selling soon,” which suggested his continued commitment to the project.

“We have no plans to sell our unlocked tokens anytime soon,” Sun said at the time. “The long-term vision here is too powerful, and I’m fully aligned with the mission.”

Sun was an early presale participant in the $WLFI token.

Source: World Liberty Financial

$WLFI, a decentralized finance project backed by US President Donald Trump, officially launched trading on Monday. After briefly surging to a high of about $0.32, the token has since fallen sharply. By Thursday, it was down 22% on the day, trading below $0.18, according to CoinMarketCap.

Related: What’s the real $WLFI? How to avoid the scammers

This is a developing story, and further information will be added as it becomes available.