TLDR

Justin Sun’s locked WLFI tokens have dropped $60 million since being blacklisted by World Liberty Financial.

World Liberty Financial froze 272 wallets in a security measure, including one linked to Sun’s address.

Sun invested $75 million in WLFI, but his tokens have remained inaccessible since September.

The value of WLFI tokens has fallen over 40% since they began trading in September 2025.

Justin Sun’s locked World Liberty Financial (WLFI) tokens have experienced a massive decline of $60 million in value since September 2025. This comes after Sun was blacklisted by WLFI for moving around $9 million worth of tokens, which the project labeled as suspicious. Despite Sun’s claims of innocence, the situation remains unresolved, and his locked tokens have yet to be released.

WLFI, a DeFi project tied to President Donald Trump’s initiatives, made waves when it blacklisted Sun’s account, freezing his tokens. The freeze came after a phishing attack and reports of high-risk activities linked to several wallets, including Sun’s. Despite the freeze, WLFI maintained that its actions were not targeted but were necessary to protect user funds.

World Liberty Freezes 272 Wallets Including Sun’s

In September, WLFI announced it had frozen 272 wallets as part of a broad security measure. Among the frozen wallets was one linked to Justin Sun, who had invested significantly in the project. WLFI stated that 215 of the wallets were associated with an active phishing attack, while the remaining were flagged for high-risk exposure or compromised activity. Sun’s wallet, which had been involved in a large transaction, was flagged for suspected misappropriation of other holders’ funds.

Sun denied any wrongdoing, claiming that the freeze was “unreasonable.” He emphasized that he had supported the project by investing $75 million in WLFI and had always aimed to help grow the platform. “I have contributed not only capital but also my trust and support for the future of this project,” Sun stated at the time.

WLFI, however, stood by its decision, clarifying that user safety was the priority.

“We do not seek to blacklist anyone. We respond when alerted to malicious or high-risk activity… User safety > everything,” WLFI’s team stated.

$60 Million Loss as Tokens Plunge

Since being blacklisted, Sun’s WLFI tokens have seen a dramatic decline in value. Blockchain analytics platform Bubblemaps reported that the value of his locked tokens has dropped by approximately $60 million since September.

At the time of writing, WLFI tokens are trading near $0.14, with Sun holding approximately 545 million tokens, now valued at around $74 million.

Data from Arkham Intelligence further confirmed this trend, showing that Sun’s token holdings have declined significantly since August. At one point, Sun held close to 3 billion WLFI tokens. The decline in his holdings coincides with a broader market downturn, with WLFI’s price falling by over 40% since its initial listing.

What Lies Ahead for Sun and WLFI?

The freeze of Sun’s tokens has raised several questions about transparency, governance, and risk management in decentralized finance (DeFi). While WLFI insists that the freeze was necessary to safeguard its users, many in the community have expressed concerns about the project’s ability to maintain decentralization and trust. The project has not provided any updates on when, or if, Sun’s tokens will be unlocked, leaving his $60 million paper loss unresolved for now.

As of today, Justin Sun remains blacklisted, and his tokens remain inaccessible. Neither party seems close to resolving the dispute, and the situation continues to raise broader questions about governance in emerging tokenized finance ecosystems. The incident serves as a reminder of how quickly value can evaporate when access to assets is restricted, especially in the volatile world of cryptocurrencies.

With Sun’s significant paper loss, the controversy surrounding the blacklisting of his tokens may have long-term effects on both his reputation and the future of WLFI. For now, it remains uncertain whether this situation will be resolved in Sun’s favor or if it will further highlight the risks involved in DeFi governance.

The post World Liberty Freezes Justin Sun’s Tokens as Value Drops $60M Since September appeared first on CoinCentral.

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Filed under: News - @ December 23, 2025 6:18 am