Justin Sun presses WLFI team to unlock $500M frozen tokens as dispute escalates

Justin Sun has reacted to reports that his WLFI tokens were frozen unreasonably, asking the project team to unlock them. On-chain data revealed that World Liberty Fi had blacklisted two wallets linked to him. 

Sun responded on X today, saying his WLFI tokens were frozen without reason and asked for them to be unlocked.

The dispute surfaced after blockchain tracking platforms identified restrictions placed on wallets associated with Sun. Data showed that two wallets tied to him had been blocked, reportedly locking more than $500 million worth of WLFI tokens. 

Justin Sun wants $500 million worth of WLFI tokens unlocked

A Cryptopolitan report showed that, based on Arkham Intelligence, Sun had moved approximately 9 million WLFI tokens shortly after unlocking them, raising speculation that he was preparing to sell them. Sun received 540 million WLFI tokens during the token’s launch and had a vested reserve of around 2.4 billion.

To the World Liberty Financials team and the global community,

As one of the early major investors in World Liberty Financials, I have contributed not only capital but also my trust and support for the future of this project. My goal has always been to grow alongside the team…

— H.E. Justin Sun 👨‍🚀 (Astronaut Version) (@justinsuntron) September 5, 2025

Word Liberty Financial’s move to lock the tokens reflected a drastic approach, as Sun was one of the initial most prominent backers during its presale rounds. His participation helped with quicker fundraising. He argued that as one of the earliest members, he deserved the same respect accorded to peers and the same rights. He continued to say that tokens are sacred and inviolable, which should be the most basic value of any blockchain. 

Further into his statement, he called on the project team to respect DeFi principles and unlock his tokens. He also warned that such actions are one-sided and could harm confidence in World Liberty Financial and break the rights of legitimate investors.

Word Liberty Financial’s decision to restrict the funds was primarily driven by the on-chain data indicating that Sun moved WLFI to the HTX exchange, a platform over which he has significant control, which raised suspicion that Sun may have been using the exchange to offload the tokens.

An earlier Cryptopolitan report highlighted that HTX offered up to 20% annualized yield for WLFI deposits. Further discoveries showed attempts to move the funds to Binance, although the token is not yet listed on the exchange. 

WLFI token falls to $0.18 amid Justin Sun’s wallet saga

The crypto entrepreneur rejected the allegations, arguing that those transactions were genuine transfers for experimental purposes. He said the token movements were tests of HTX’s infrastructure, rather than attempts to sell.

The community reaction was largely critical of Sun. Jacob King, CEO of SwanDesk, wrote that Sun’s need for ChatGPT to write the apology was insane. He called on WLFI to avoid anything related to Sun and associated partners.

WLFI’s price has dropped to $0.186 from its ATH of $0.46 during the launch, a more than 40% drop from the post-launch price. At least 29% of wallets were sold completely after the token’s launch, contributing to the current fall in its price. WLFI has not yet commented publicly or shown any intent to unlock the tokens so far.

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