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The well-known Chinese crypto mogul Justin Sun has been blocked by WLFI: tokens worth 107 million US dollars have been frozen as a result. Although the powerful magnate is a direct partner of the Trump family, they have now intervened against his actions. He may be accused of price manipulation. Sun insists on his innocence.
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Justin Sun Blocked: That’s why WLFI is Intervening after a Million-Dollar Transfer
The well-known crypto mogul Justin Sun has been blocked by World Liberty Financial. As a result, Sun can no longer move his 595 million WLFI worth around 107 million US dollars. The block also affects a further 2.4 billion WLFI, which are currently still locked in vesting.
What had happened? Justin Sun sent several million WLFI to the centralized crypto exchange HTX. The operators of World Liberty Financial also caught wind of the transactions and reacted quickly. All WLFI from the blockchain address concerned were frozen.
Bubblemaps noticed the process yesterday evening. However, the sticking point was not the mere sending of the tokens to the exchange, but an actual sale. The crypto mogul had already transferred WLFI to a marketplace for the first time on Wednesday.
“⚠️ Justin Sun has been blacklisted after allegedly selling WLFI,” Bubblemaps wrote yesterday.
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Why is World Liberty Financial Blocking Major Investors?
Meanwhile, the question is being raised in the crypto scene as to why World Liberty Financial has blocked the major investor Justin Sun at all. The operators of the project may be concerned about institutional sales.
World Liberty Financial is a project of the Trump family. According to official information, Eric Trump and Donald Trump Jr. operate the project – they are the sons of the incumbent US President Donald Trump.
Blockchain analysts from Onchain Lens, on the other hand, claim that World Liberty Financial did not simply want to prevent the sale of Sun’s property. Instead, there are fears that the Chinese deliberately manipulated the price of the token.
“[World Liberty Financial] claims that a crypto exchange has misused users’ tokens to depress the price.”
Justin Sun, who owns two crypto exchanges, is therefore suspected of being behind the price manipulation. Sun operates the HTX trading platform, to which he had directed his last transaction. In addition, Poloniex is a second marketplace in his possession.
Justin Sun Insists on Innocence: That’s What’s behind It
Justin Sun insists on his innocence on X. He therefore asked the operators of WLFI to lift the block on his tokens. Although he had undertaken the accused transactions, he had only done so with the intention of checking the functionality of his crypto exchange HTX for its correctness.
In addition, the WLFI team’s approach contradicts the fundamental principles of the blockchain, whose task it is to maintain neutrality and freedom from censorship, in contrast to fiat currencies.
“My tokens were frozen unjustifiably. (…) Tokens are sacred and inviolable – that should be the most fundamental value of any blockchain,” Sun wrote.
He added: “Our address only performed some general deposit tests with very small amounts, followed by a distribution. There were no purchases or sales, so this could not have had any impact on the market.”
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Although Sun claims that he has not influenced the WLFI course in any way, some experts doubt the veracity of this promise.
“Over 85,000 wallets participated in the WLFI presale. Now, two days after launch: • 60 percent are still holding their coins • 29 percent have already sold out completely • 10 percent have partially sold • 1 percent have bought more coins”, according to Bubblemaps.
Bubblemaps at least suggests that Sun could be one of the investors who have already realized profits. In the two pre-sale rounds, Sun acquired a total of three billion WLFI for a purchase price of 75 million US dollars. Research by CoinPro shows: Early investors were already able to realize profits of 500 to 2,000 percent.
