A World Liberty Financial (WLFI) wallet tied to entrepreneur Justin Sun has been blacklisted, locking tens of millions in tokens and wiping roughly $60 million off the value of those holdings as WLFI’s price slid — a development that has amplified investor concerns about governance and the limits of decentralization. On-chain analytics firm Bubblemaps reports the Sun-linked address remains on WLFI’s blacklist, meaning it cannot send or receive tokens. Over the past three months the market value of the frozen holdings fell by about $60 million; Bubblemaps says the drop tracked broader WLFI price weakness and changing market sentiment, not forced liquidations of the frozen assets. According to the analytics, WLFI administrators added the wallets to the blacklist in September after an alleged sale by Sun. The data shows Sun moved roughly $1 million worth of WLFI—around 4.9 million tokens—to centralized exchange HTX. Despite the blacklist, Bubblemaps finds Sun still controls nearly 600 million unlocked WLFI tokens, valued at roughly $135 million; industry reports put his total exposure at about $175 million when including a reported $100 million commitment to the TRUMP memecoin and roughly $75 million invested directly in WLFI. WLFI is the governance token for World Liberty Financial, a project positioning itself as a bridge between traditional finance and DeFi that says it raised more than $550 million in a presale. The token began public trading on Sept. 1, 2025, and after an initial spike entered a downtrend — a price trajectory that has refocused conversation on the project’s governance mechanisms and the degree of centralized control administrators can exert. Technically, WLFI is under pressure: bullish volume has faded and the token is struggling below a key resistance level known as the Point of Control. Analysts warn that failure to reclaim that level raises the odds of a bearish retest toward $0.13. The blacklist and the restrictions it imposes have practical and reputational consequences. By freezing the Sun-linked address, WLFI administrators have curtailed his ability to move or receive the tokens, limiting his flexibility in volatile markets and reigniting debate over whether token projects that market themselves as “decentralized” can reconcile on-chain governance with off-chain admin controls. Sun has publicly criticized the freeze, saying he invested capital and trust into the project and calling the action “unreasonable and damaging.” The episode compounds scrutiny around his growing involvement in politically linked tokens: he became the largest holder of the TRUMP memecoin and attended a dinner hosted by former President Trump where he received a “Trump Golden Torbillon” watch, moves that raised his profile in politically adjacent crypto circles. What to watch next: whether WLFI admins lift or maintain the blacklist, how Sun responds strategically, and whether WLFI can reclaim critical price levels to restore investor confidence. For traders and governance-watchers alike, the situation underscores persistent tensions between large token holders, on-chain governance, and centralized emergency powers in emerging DeFi projects. Read more AI-generated news on: undefined/news

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