Justin Sun’s frozen WLFI tokens sparks comparisons to debanking

Trump-linked World Liberty Finance has started to attract accusations of debanking users from crypto stakeholders after high-profile token holders like Justin Sun reported that the project froze their WLFI tokens in an indiscriminate fashion. 

On September 1, 2025, the WLFI governance token had its token generation event (TGE), which unlocked 20% of the total 100 billion tokens, with Justin Sun claiming 600 million tokens valued at approximately $200 million.

Justin Sun publicly stated that he had no plans to sell his unlocked tokens, emphasizing his alignment with the project’s long-term vision and commitment to increasing the USD1 stablecoin supply by $200 million.

However, after supposedly making an on-chain move of roughly $9 million worth of the asset, World Liberty Financial blocked his ability to transfer or use his multi-million dollar stash of WLFI.

What happened to Sun’s WLFI tokens?

Sun condemned the move and has since explained that the address involved “only carried out a few general exchange deposit tests with very small amounts, followed by an address dispersion.”

“No buying or selling was involved, so it could not possibly have any impact on the market,” he wrote on X.

Despite his firm denial, some still think that Sun was secretly selling his allocation as the suspicious transactions were flagged by blockchain analytics platform Nansen and Arkham Intelligence.

If it is confirmed that he was selling the tokens before they vested, some believe it is grounds for account action.

Of course, Sun continues to deny any wrongdoing, and he has asked that his tokens be unlocked so he can continue supporting the project.

Other WLFI wallets also got frozen

Sun’s dispute with World Liberty Finance is the most popular, but it is not the only case of token freezing involving the project.

Another user has also reported their tokens were frozen, and the reason they were given in an email from the project was that their wallet had been flagged due to its “high risk blockchain exposure.”

However, while Sun seems to be holding out hope his tokens will be unlocked, perhaps because of his status in the industry, this user seems to have given up hope.

In a recent tweet, they referenced the email they got from WLFI and wrote: “just got a reply from @worldlibertyfi. TLDR is, they stole my money, and because it’s the @POTUS family, I can’t do anything about it. This is the new age mafia. There is no one to complain to, no one to argue with, no one to sue. It just… is.”

The user also tagged the famous ZachXBT, calling it “the scam of all scams.” When the crypto sleuth replied, he seemed to confirm that it was possible the user’s account was a false positive and expressed hope that things would be resolved soon.

Others who weighed in on the subject asked important questions too, like why the project did not decide the wallet was high risk while it accepted funds from them.

In fact, one user went as far as accusing World Liberty of just trying to stave off sell pressure by “blacklisting wallets of ICO participants,” a theory many others believe, as they joked about how the user was being punished for attempting to sell before the team.

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