Justin Sun’s Blacklisted WLFI Wallet Loses $60 Million as Governance Concerns Rise

Justin Sun’s blacklisted WLFI wallet and frozen token holdings.

Summary: A cryptocurrency wallet associated with Justin Sun is currently blacklisted within the World Liberty Financial (WLFI) token framework, leading to a freeze on millions of tokens. As WLFI’s price deteriorates, investors are increasingly concerned about the implications for governance and decentralized operations.

Key Takeaways:

Justin Sun’s WLFI wallet remains blacklisted, freezing nearly $60 million in tokens.
The WLFI token’s price has faced significant decline, influenced by market sentiment and concerns over governance.
Sun's wallet was blacklisted after he allegedly transferred WLFI tokens worth approximately $1 million to an exchange.
Despite this, Sun retains nearly 600 million unlocked WLFI tokens valued around $135 million.
The WLFI project aims to bridge traditional finance with decentralized finance, raising over $550 million during its presale.

Justin Sun’s WLFI Wallet and Market Impact

A cryptocurrency wallet linked to entrepreneur Justin Sun has been blacklisted by the World Liberty Financial (WLFI) token system, preventing this address from performing transactions. This information has been provided by on-chain analytics platform Bubblemaps.

As a result, the market value of the tokens that are locked in this wallet has fallen by about $60 million over the past three months. This decline coincided with a general weakening of WLFI tokens and seems to reflect shifts in market sentiment, rather than a forced liquidation of these assets, according to the platform.

Why Has the WLFI Wallet Been Blacklisted?

According to Bubblemaps, WLFI administrators decided to blacklist wallets associated with Sun back in September after he reportedly sold WLFI tokens. Specifically, Sun is believed to have transferred around $1 million worth of WLFI tokens to the centralized exchange HTX, which amounts to an estimated 4.9 million tokens.

JUST IN: Justin Sun remains blacklisted by Trump-backed World Liberty Financial ($WLFI). His locked tokens have lost more than $60 million in value amid a continuing price downturn.
— SwanDesk (@SwanDesk) December 23, 2025

Currently, Sun still controls nearly 600 million unlocked WLFI tokens, valued at approximately $135 million. His overall exposure is estimated to be around $175 million, which includes $100 million allocated to the TRUMP memecoin and about $75 million directly invested in WLFI.

Understanding WLFI and Its Governance Role

WLFI functions as the governance token of World Liberty Financial, which positions itself as a connector between traditional and decentralized finance. The project managed to raise over $550 million in its presale, emphasizing its significant market interest.

However, WLFI has struggled with price fluctuations, risking a bearish retest at $0.13 as buying interest declines. The bearish trend raises concerns over governance practices that impact long-term confidence in the market.

WLFI began trading publicly on September 1, 2025, with an initial price surge that soon reversed into a downtrend, putting governance discussions at the forefront among investors and analysts.

The Controversy Surrounding Governance and Token Control

Justin Sun has been actively involved in politically connected cryptocurrency projects, notably becoming the largest holder of the TRUMP memecoin and attending a dinner hosted by former President Donald Trump. During this event, Sun received a “Trump Golden Torbillon” watch, which further elevated his profile within the industry.

However, the blacklisting of Sun’s WLFI wallet has limited his operational capabilities by locking up the tokens at the associated address. This restriction has sparked a broader debate regarding centralized controls within the decentralized finance space.

In a previous public statement, Sun criticized the freeze, insisting that his contributions to the project were substantial and expressing concern that the token freeze was unreasonable and detrimental. He conveyed his desire to work collaboratively with the project team and community.

These restricted holdings have confined Sun’s actions during market volatility, underscoring the ongoing tension between large token holders and the governance frameworks that regulate decentralized finance initiatives.