World Liberty Financial (Wlfi) Defending his decision to freeze hundreds of wallets, including Tron, found Justin Suns and said the move was intended to protect users from phishing-related compromises, not to stifle normal trade.
“WLFI only intervenes to protect users, never to dampen normal activity,” the project wrote at X.
We have heard societal concerns about the recent wallet stickers. Transparency first: WLFI only intervenes to protect users, never to dampen normal activity. 🦅
– wlfi (@worldlibyphy) September 5, 2025
WLFI said earlier this week that 272 wallets were blacklisted with approx. 215 of those associated with a phishing attack and 150 compromised through support channels.
Justin Sun’s WLFI address was frozen on Friday after several small “dispersion test” transfers between his own wallets after claiming unlocked tokens at the launch, none of which was the sale.
The outgoing transfers from solar-labeled wallets made it look like the WLFI investor with great name sold its tokens, but onchain data paints another image.
In a post on X, Nansen pointed out -founder Alex Svanevik that Sun’s transfers did not match the timeline of WLFI’s token coat.
Nansen Data shows that Justin Sun transferred 50 million WLFI worth approx. $ 9.2 million on September 4 at 1 p.m. 09:18 UTC – three to five hours after token’s steepest drop – which means the transfer followed the crash instead of causing it.
Nansen onchain data shows a $ 12 million WLFI transfer from HTX to Binance by a third-party market manufacturer.
Tokensene was borrowed using HTX’s own capital as part of a routine rebalance, but the move came after WLFI’s sharpest fall and was too small to have moved the market considering WLFI has a daily trading volume of over $ 700 million.
When deposited on binance, it is impossible to determine if the tokens were sold or simply held.
Instead, market participants point to wide short circuit and dumping of WLFI through market producers and commercial tables across multiple exchanges such as the real driving force for the crash.
Onchain Records Back This view: A transfer from Bitgo to FlowDesk marked by Nansen, coincided with the start of WLFIS DIAS and has become an important data point to explain the sale.
Meanwhile, WLFI’s decision to freeze funds associated with the crash, nervously scraped among whales, market producers and other commercial tables that their tokens could be frozen by literally Fiat.
“If they can do it against the sun, who is next?” is how a person who is familiar with conversations among large market participants paraphrased it when talking to Coindesk.
WLFI is currently trading for $ 0.18, according to CoingeCKO. It’s down 40% since listing.
