Justin Sun Remains Blacklisted by WLFI as Locked Tokens Lose $60 Million

TLDR:

• Justin Sun WLFI blacklist continues three months after wallet freeze.
• Locked tokens lost an estimated $60 million due to market decline.
• WLFI froze 272 wallets following phishing and suspicious activity.
• Sun currently holds 545M tokens, all inaccessible amid falling prices.

Justin Sun WLFI blacklist continues to stand unresolved as on-chain data confirms sustained losses tied to frozen holdings. 

Three months after World Liberty Financial restricted hundreds of wallets following a security intervention, the locked tokens linked to Justin Sun have declined sharply in value. Independent blockchain analytics firms now estimate a reduction of roughly $60 million since September. 

WLFI maintains the measures were enacted to protect users, while the affected assets remain inaccessible and subject to market volatility.

Security Freeze and Classification of Affected Wallets

The current dispute began in early September when World Liberty Financial announced the freezing of 272 wallets. 

The project cited an active phishing campaign and related suspicious activity as the trigger for its response. WLFI published a breakdown explaining that most of the wallets were directly associated with ongoing attacks targeting users within the ecosystem.

According to the disclosure, 215 wallets were linked to confirmed phishing activity, while 50 wallets belonged to users who reported compromise and requested preventive action. Five additional wallets were classified as high-risk due to exposure concerns. 

One wallet was flagged for suspected misuse of funds belonging to other holders, though WLFI initially withheld identifying details.

Blockchain investigators later associated that wallet with Justin Sun. Reporting referenced on-chain clustering and transaction behavior to support the link. 

Sun rejected the allegations and described the restrictions as unjustified. WLFI reiterated through public statements and social media posts that the freeze was procedural rather than personal, stressing that responses were driven by security alerts and risk assessment processes.

Market Decline and frozen exposure over time

Justin Sun WLFI blacklist has coincided with a broader downturn in the token’s market performance. 

Recent posts from Bubblemaps indicate that Sun’s WLFI position remains fully locked. As prices declined steadily over the quarter, the inability to adjust exposure resulted in substantial paper losses tied to the frozen balance.

Arkham Intelligence data aligns with these findings, showing a sustained decrease in valuation across the affected period. 

Historical records suggest Sun once controlled close to three billion WLFI tokens. A marked reduction occurred around August and September, leaving a significantly smaller balance recorded on-chain today.

Current data indicates approximately 545 million WLFI tokens associated with Sun’s addresses. At prices near $0.1318, the holdings are valued at about $73 million. 

The freeze has prevented any form of liquidation or risk management during the drawdown. WLFI has not released guidance on potential timelines or criteria for lifting restrictions.

Justin Sun WLFI blacklist remains a focal point in discussions around governance controls within tokenized financial structures. 

While WLFI positions itself as community-driven, its retained authority to restrict wallets continues to face scrutiny. As of now, the assets stay locked, the valuation continues to fluctuate, and neither party has signaled movement toward resolution.

The post Justin Sun Remains Blacklisted by WLFI as Locked Tokens Lose $60 Million appeared first on Blockonomi.