In a dramatic twist shaking the crypto landscape, blockchain entrepreneur Justin Sun (known for his public support of initiatives linked to Donald Trump’s circle) has accused World Liberty Financial (WLFI) of unjustly freezing his WLFI tokens without explanation.
The incident, reported Friday, has reignited concerns over the true decentralization of the crypto industry. Sun, a key investor in WLFI, stated on X that his tokens were “irrationally frozen” and urged the WLFI team to unlock them, emphasizing that “tokens are sacred and inviolable”, a core value of blockchain philosophy.
WLFI began public trading this week, but its price dropped sharply from over $0.30 to around $0.19, according to CoinGecko. The project also imposed initial restrictions: only 20% of early investor tokens were allowed to be sold at launch.
WLFI’s silence in response to the freeze has fueled growing skepticism. Industry observers likened the move to a new form of “debanking” (a practice the project had explicitly vowed to avoid) undermining its message of financial inclusion and openness.
This controversy unfolds amid an ongoing civil lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Sun for alleged fraud, adding regulatory pressure and reputational risk to the situation.
