World Liberty Fi blacklisted two wallets associated with Justin Sun

Source Cryptopolitan

A recent transaction shows some of the WLFI holdings unlocked for Justin Sun may be blacklisted. Sun may have lost access to 540M unlocked tokens and a reserve of 2.4B vested WLFI. 

Justin Sun made serious promises to hold onto WLFI and become one of the most serious backers for World Liberty Fi. Just days after receiving his unlocked tokens, Sun moved a small amount to HTX, the exchange where he has ultimate control. Reportedly, HTX only offered yield for holding WLFI, with up to 20% annualized. 

However, on-chain data revealed a transaction where two of Sun’s wallets were blacklisted. The event was later confirmed by the tracking of Arkham Intelligence. 

Reportedly, Sun moved more WLFI tokens and potentially sold, adding to the price drawdown from the past few days. Sun mostly interacted with the HTX hot wallet. The latest transaction sent WLFI to an intermediary address, a few hours before the blacklisting. 

Did World Liberty Fi lock up Justin Sun's WLFI wallets?
WLFI tokens were frozen in two of Justin Sun’s wallets, locking up $500M of investments. | Source: Etherscan

The blacklisting was seen as a drastic measure, since Sun was among the top project backers and helped close the presale rounds faster with large-scale purchases. 

Soon after the blacklisting became public, a wallet identified as HTX48 started sending back WLFI to the token’s contract.

Sun denied the allegations that he has been dumping WLFI through his own exchange. Instead, he stated the token moves were experimental and had to test the exchange infrastructure. 

Did World Liberty Fi lock up Justin Sun's WLFI wallets?
Justin Sun denied the attempts to sell WLFI, instead claiming he was moving tokens as an experiment. HTX recently announced a yield vault for WLFI and TRUMP with the highest annualized yield. | Source: X

On-chain researchers also discovered attempts to send WLFI to Binance. For now, the token is not even listed on the exchange, but the highly active transfers from wallets connected to Justin Sun further boosted the suspicions of plans to sell.

WLFI kept sliding after the wallet lock

The suspicion against Sun was that on HTX, the token was somehow sold, essentially tanking the market price. 

WLFI slid further to $0.18, losing over 40% since its initial post-unlock rally. The token was in price discovery mode, moving from DEX trading to more listings. HTX actually promised to be one of the token’s platforms. 

However, HTX volumes were not reported. Most of the WLFI traffic still relied on Bitget and OKX, as well as Mexc and Gate. 

World Liberty Fi tried to discourage whales from selling 

The start of trading for WLFI did not see any team wallets cashing out. The Trump family DeFi project tried to be more careful in comparison with the handling of meme tokens. This time around, the project tried to discourage whales from cashing out. 

WLFI also took another hit from a new reserve wallet that was revealed just during the unlock. A special reserve wallet has been created, which will only be spent based on community voting. World Liberty Fi still aims to discourage selling on the open market, though it cannot prevent some whales from realizing profits. 

Based on initial data, 85,000 wallets held WLFI following the presale rounds. Of those wallets, 29% of buyers at the ICO sold completely. Another 10% sold some of their holdings. The remaining 60% of wallets were apparently true believers, still holding onto their WLFI. 

Hyperliquid whales signal a bearish outlook for WLFI. 12 out of 19 whales hold short positions, which achieved higher unrealized profits. 

Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Climbs to $111.5K as Altcoins Struggle Ahead of Payroll ReportBitcoin saw a modest rise on Friday, buoyed by gains across risk-sensitive markets as investors awaited the release of U.S. nonfarm payrolls data.
Author  Mitrade
Yesterday 08: 12
Bitcoin saw a modest rise on Friday, buoyed by gains across risk-sensitive markets as investors awaited the release of U.S. nonfarm payrolls data.
placeholder
Asian Currencies Flat as Dollar Softens Amid Labor Market and Fed Rate-Cut FocusMost Asian currencies slipped slightly on Thursday as the U.S. dollar recovered some of its overnight losses, driven by increasing market confidence that the Federal Reserve will reduce interest rates this month due to ongoing signs of labor market cooling.
Author  Mitrade
Sept 04, Thu
Most Asian currencies slipped slightly on Thursday as the U.S. dollar recovered some of its overnight losses, driven by increasing market confidence that the Federal Reserve will reduce interest rates this month due to ongoing signs of labor market cooling.
placeholder
Australia’s Trade Surplus Reaches 18-Month High in July Driven by Export GainsAustralia’s trade surplus expanded more than anticipated in July, primarily fueled by robust export activity as demand for commodities in key Asian and European markets showed slight recovery during the month.
Author  Mitrade
Sept 04, Thu
Australia’s trade surplus expanded more than anticipated in July, primarily fueled by robust export activity as demand for commodities in key Asian and European markets showed slight recovery during the month.
placeholder
S&P 500 and Nasdaq Futures Climb on Google Ruling Amid Tariff ConcernsS&P 500 and Nasdaq futures climbed modestly on Tuesday evening, fueled by strong gains in Alphabet Inc. after a court handed down a less stringent antitrust ruling than initially feared.
Author  Mitrade
Sept 03, Wed
S&P 500 and Nasdaq futures climbed modestly on Tuesday evening, fueled by strong gains in Alphabet Inc. after a court handed down a less stringent antitrust ruling than initially feared.
placeholder
Asian Stocks Slip as Australia and China Show Limited Reaction to Positive DataAsian equities declined on Wednesday, following Wall Street's losses driven by escalating concerns over U.S. trade tariffs.
Author  Mitrade
Sept 03, Wed
Asian equities declined on Wednesday, following Wall Street's losses driven by escalating concerns over U.S. trade tariffs.
goTop
quote