Justin Sun’s WLFI Wallet Blacklisted After $9M Transfer as Token Plunges

Tron founder Justin Sun is facing scrutiny after his WLFI token address was blacklisted shortly following a $9 million transfer to crypto exchange HTX, fueling speculation about trading restrictions during the project’s shaky debut.

$9M Transfer Triggers Blacklist

On-chain data from Nansen and Arkham flagged Sun’s WLFI wallet on Thursday after he moved 50 million WLFI tokens, worth around $9 million, to HTX. The sudden blacklist raised questions about whether WLFI was restricting certain users from offloading tokens in its first week of trading.

Cointelegraph reached out to Sun’s team for comment but received no reply before publication.

Sun Pushes Back Against Speculation

Responding on X (formerly Twitter), Sun dismissed claims of market manipulation. He explained that the address only conducted “routine exchange deposit tests with very small amounts” of WLFI and insisted the actions “could not possibly have any impact on the market.”

Earlier, Sun had reassured the community that he had “no plans to sell unlocked tokens anytime soon”, emphasizing a long-term commitment to WLFI’s vision.

WLFI Price Slides in First Week

WLFI, a decentralized finance project backed by U.S. President Donald Trump, officially launched trading on Monday. After an initial surge to $0.32, the token has since collapsed, losing over 22% in a single day to trade below $0.18 on Thursday, according to CoinMarketCap.

The blacklisting has only added to uncertainty surrounding WLFI, as traders weigh Sun’s involvement against early signs of market instability.