World Liberty Blacklists Justin Sun’s Address — Unexpected Move, Significant Impact

TradingKey – World Liberty Financial has blacklisted Tron founder Justin Sun’s WLFI address, sparking a rebound in market confidence and lifting WLFI’s price by over 12%.

On Friday, September 5, in the wake of the “blacklist incident,” the Trump family–backed governance token WLFI halted its slide and surged more than 12%, climbing from a low of $0.16 to around $0.18. Market sentiment showed a clear thaw.

WLFI price chart – Source: CoinMarketCap

According to on-chain analysts, World Liberty Financial placed Justin Sun’s address on its blacklist. That wallet held approximately 540 million unlocked WLFI tokens and 2.4 billion tokens still subject to vesting. While selling newly unlocked tokens isn’t illegal, the decision to freeze Sun’s holdings caught observers off guard.

World Liberty Financial explained its move: “We suspect a trading venue was using user-controlled tokens to drive sell orders and depress the price.” In other words, the protocol isn’t accusing Sun of personally dumping his WLFI — so his pledge not to sell remains technically intact — but the action reflects the project team’s determination to defend the market. The statement also hinted that the Trump family could take further steps to curb Sun’s U.S. activities unless he resolves the dispute.

Justin Sun has not admitted to any WLFI sales. On social media, he responded: “Our address simply conducted a few small deposit-test transactions on exchanges, then performed an address split. There was no actual buying or selling—so there’s no way it could have impacted the market.” Whether Sun’s explanation will satisfy World Liberty Financial remains to be seen.