The post WLFI blacklists Justin Sun’s wallets amid dumping allegations appeared on BitcoinEthereumNews.com.

Justin Sun is once again at the center of crypto controversy but this time over alleged dumping of WLFI tokens. The project’s decision to blacklist his wallet has sparked a fierce debate over transparency, fairness, and decentralization. Summary WLFI blacklisted a wallet linked to Justin Sun after nearly 60 million tokens were moved to Binance. Sun denied selling, calling the blacklisting unjust and a breach of investor rights. The crypto community is split, with some defending Sun and others accusing him of indirect dumping. WLFI price has dropped 17.9% in 7 days as concerns rise over centralization and protocol trust. World Liberty Financial has blacklisted an address linked to Tron founder Justin Sun, affecting 595 million worth of unlocked WLFI (WLFI) tokens and sparking a wave of controversy and renewed scrutiny over centralization and governance within the newly launched protocol. According to on-chain data, WLFI’s controlling address executed the guardianSetBlacklistStatus function on the WLFI token contract, freezing activity from an address known to be associated with Sun. The move followed suspicious activity tied to HTX address “HTX 48,” which transferred nearly 60 million WLFI tokens to a Binance deposit wallet within 32 hours.  WLFI’s core team has not released a formal explanation, but market observers believe the action was triggered by concerns that Sun’s address was offloading tokens, potentially triggering or contributing to a sharp price decline. The blacklisting appears to be an attempt to prevent further market disruption and calm investor fears, especially in light of WLFI’s volatile debut. Sun denies dumping WLFI, claims wallets were wrongly frozen Justin Sun responded on X (formerly Twitter), asserting that the transfers were routine deposit tests and portfolio shuffling, not sales. “Our address only conducted a few small deposit tests to the exchange, followed by some address splitting,” Sun wrote. “There was…

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Filed under: News - @ September 5, 2025 8:31 am