Justin Sun, founder of the TRON blockchain, remains blacklisted by World Liberty Financial (WLFI) three months after the DeFi project froze wallets associated with a major security intervention. According to blockchain analytics platforms Bubblemaps and Arkham Intelligence, Sun’s frozen WLFI holdings have fallen in value by roughly $60 million since September.
Justin Sun is still blacklisted by WLFI
— Bubblemaps (@bubblemaps) December 22, 2025
in 3 months, his locked tokens dropped $60m in value
absolutely brutal https://t.co/3Af2px04h5 pic.twitter.com/4qxuiE4qwJ
WLFI confirms 272 wallets were frozen in September
WLFI confirmed in public updates that 272 wallets remain frozen. The project stated that the measure was taken after reports of extensive phishing attempts and other suspicious transfers.
The project’s breakdown of the affected wallets includes:
- 215 wallets (about 79%) connected to an active phishing attack.
- 50 wallets (about 18.4%) whose owners requested protective freezing after compromise.
- 5 wallets (about 1.8%) flagged as high-risk exposures.
- 1 wallet (about 0.4%) identified for “suspected misappropriation of other holders’ funds.”
WLFI did not identify the specific wallet. However, subsequent reports from Reuters linked the “misappropriation” flag to an address controlled by Justin Sun.
Sun denied any wrongdoing and said the freeze was “unreasonable.” WLFI insisted that its actions were non-discriminatory and strictly precautionary, stating:
“We do not seek to blacklist anyone. We respond when alerted to malicious or high-risk activity… User safety > everything.”
Bubblemaps data shows steep declines in frozen balances
As HodlFM reported earlier, Sun cannot access his frozen WLFI tokens. Although his wallet still holds hundreds of millions of WLFI, the market value has fallen by about $60 million in three months as the token declined sharply.
CoinGecko data show WLFI trading near $0.14 this week. Sun’s frozen holdings are worth about $74 million, down from more than $130 million in September. Arkham data further indicates a significant decline in Sun’s total WLFI balance between August and September as the platform’s market capitalization weakened.
The freeze remains in effect, and there has been no public indication from WLFI about when or whether the restrictions might be lifted.
Background: Sun’s investments and ongoing tensions
Sun is a major participant in politically connected digital asset projects. He has committed about $175 million to Trump-linked crypto ventures, including $75 million in WLFI and $100 million in the TRUMP memecoin. These holdings gave him a visible position in the WLFI ecosystem and access to high-profile events, such as a dinner with former U.S. President Donald Trump, where he received a “Trump Golden Torbillon” watch.
WLFI serves as a governance token for the World Liberty Financial network, a DeFi project describing itself as a bridge between traditional banking and decentralized systems. The token began trading on September 1, 2025, with prices peaking near $0.24 before dropping over 40% due to volatility and governance disputes.
Sun expressed frustration in public statements, saying he had contributed capital and trust to WLFI’s development. He wrote that his goal was “to grow with the team and the community” but that his tokens “were unreasonably frozen.”
🚨 Justin Sun claims his $WLFI tokens were “unreasonably frozen” and is urging the team to unlock them.
— HodlFM (@Hodl_fm) September 5, 2025
He argues that early investors deserve equal rights and that freezing tokens violates the legitimate rights of investors. pic.twitter.com/5WATloRyxb
Market and governance implications
The WLFI freeze is a rare test of how permissioned smart contracts can enforce security actions in decentralized systems. While the project emphasized protection against fraud, blacklisting large token holders undermines commitments to open, decentralized governance. This raises questions about contract transparency, and the risk of unilateral control within tokenized financial ecosystems.
The long standoff between Justin Sun and World Liberty Financial shows how hard it is to find a balance between enforcing security and giving users freedom in DeFi. As tokenized finance expands, the WLFI case shows how governance measures, if misapplied or unclear, can magnify financial losses and damage confidence across emerging digital asset markets.
Oleksii Shumak
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