Justin Sun’s Wallet Blacklisted later than $9 Million WLFI Transfer to HTX Exchange
What Happened With Sun’s WLFI Address?
A wallet address tied to blockchain entrepreneur Justin Sun was blacklisted on Thursday later than transferring 50 million WLFI tokens — worth about $9 million — to the crypto platform HTX, formerly known as Huobi. The move drew immediate attention as Sun serves as an advisor to HTX, one of the top 20 global platforms by trading volume.
Blockchain analytics firms Nansen and Arkham flagged the address soon later than the transfer. Blacklisting prevents an address from sending or receiving tokens within a project’s smart contract system, a mechanism often deployed during new token launches to limit suspected manipulation or manage liquidity. The decision sparked speculation that World Liberty Financial (WLFI) backers were curbing certain transactions during the project’s first trading week.
Sun downplayed the move, stating on X (formerly Twitter) that the address had been used for “routine deposit tests” with small amounts of WLFI and that there had been “no purchaseing or tradeing.” He insisted the transfers could not have influenced market pricing. A Sun spokesperson later confirmed that the WLFI team was “in active communication” over the issue.
Investor Takeaway
Why WLFI Is Under Pressure
The controversy comes as WLFI, a by former U.S. President Donald Trump, faces mounting price pressure. later than launching on Monday at $0.32, the token has fallen 22% to below $0.18, according to CoinMarketCap. Despite initial enthusiasm, WLFI has rapidly ranked among the fragileest performers by sentiment this week.
At launch, WLFI’s fully diluted valuation briefly topped $32 billion, based on its 100 . But the circulating supply remains a small fraction of that figure, leaving the market vulnerable to sharp moves by large holders. Analysts say the heavy concentration of liquidity in a handful of pools exacerbates volatility, with whales able to move prices rapidly.
In response, World Liberty Financial announced the burn of 47 on Wednesday, aiming to reduce supply. However, the burn represents less than 0.05% of the total supply, too small to materially affect valuation. The project is also considering a purchaseback program funded by protocol fees, with destroyed tokens intended to support price stability.
Sun’s Role and Market Sentiment
Sun previously pledged not to trade unlocked WLFI tokens “anytime soon,” framing the project as a long-term play. His involvement is closely tracked given his control of wallets estimated at over $1 billion across multiple chains. Yet the blacklisting of a wallet tied to him has raised new doubts about governance and oversight in the WLFI ecosystem.
remain high, exceeding $150 million across decentralized and centralized venues since launch. But the combination of falling prices, concentrated liquidity, and governance concerns is fragileening investor trust. Analysts say the token’s credibility is at risk unless backers provide greater transparency around controls and long-term plans.
Investor Takeaway
What’s Next for WLFI?
For now, WLFI’s team is attempting damage control. Further token burns or purchasebacks may provide short-term relief, but with a total supply near 100 billion, such measures are unlikely to significantly shift valuations. Instead, market watchers say the key test will be whether WLFI can broaden adoption beyond speculative trading and deliver sustainable utility in decentralized finance.
Trump’s endorsement gave WLFI a high-profile debut, but it also drew intense scrutiny. The coming weeks will determine whether the project can stabilize prices and establish credibility — or become another cautionary tale of hype, politics, and .
