A Justin Sun–linked wallet that World Liberty Financial (WLFI) has blacklisted has seen the market value of its frozen holdings fall by roughly $60 million over the past three months, highlighting growing governance concerns around the project. What happened - On-chain analytics firm Bubblemaps reports that WLFI’s token system has blacklisted a wallet linked to entrepreneur Justin Sun, preventing that address from sending or receiving WLFI tokens. - The frozen holdings lost about $60 million in market value over three months as WLFI’s price weakened. Bubblemaps says the decline reflects broader market sentiment and price moves, not forced liquidation of the frozen assets. - WLFI administrators reportedly added Sun-linked wallets to the blacklist in September after an alleged token sale. Bubblemaps’ data shows Sun moved about $1 million worth of WLFI (roughly 4.9 million tokens) to centralized exchange HTX at that time. Sun’s wider exposure - Sun still controls nearly 600 million unlocked WLFI tokens, valued at about $135 million according to Bubblemaps. - Reports put his total exposure around $175 million — including a reported $100 million commitment to the TRUMP memecoin and roughly $75 million invested directly into WLFI. Why it matters - WLFI is the governance token of World Liberty Financial, a project that pitches itself as a bridge between traditional finance and DeFi. The project said it raised more than $550 million in its presale. - WLFI began public trading on Sept. 1, 2025; after an initial surge it moved into a downtrend, bringing governance practices and token control to the forefront of investor discussion. - On-chain and market commentary also warns WLFI price action risks a bearish retest at $0.13 as bullish volume fades — a technical note that underscores sensitivity to sentiment around major holders and governance decisions. Broader implications - The blacklist effectively freezes Sun’s ability to transfer or receive tokens from the affected address, constraining his flexibility during market moves and fuelling debate over centralized controls within projects that present themselves as decentralized. - Sun publicly criticized the token freeze in September, saying he had invested capital and trust in the project and called the freeze “unreasonable and damaging,” expressing a wish to continue developing the token with the team and community. What to watch next - How WLFI’s governance team handles disputes and blacklist policies. - Any further movement of unlocked WLFI holdings or public actions by Sun. - Price reaction to governance news and whether confidence in WLFI’s decentralization claims recovers. The episode underscores a persistent tension in crypto: large holders and project teams can wield concentrated power that tests the practical limits of “decentralized” governance — and markets often react quickly when that power is exercised. Read more AI-generated news on: undefined/news