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- WLFI froze 272 high-risk wallets, mostly linked to phishing.
- Token retraced 14%, but market positioning remains neutral.
- Justin Sun pledges $10M, signaling potential recovery
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World Liberty Financial (WLFI), a DeFi project backed by the Trump family, has come under scrutiny after freezing 272 wallet addresses following allegations from early investor Justin Sun, founder of Tron (TRX). The move, intended to curb risky activity, has sparked debate across the crypto community on X (formerly Twitter), with some users claiming continued access issues.
We’ve heard community concerns about recent wallet blacklists. Transparency first: WLFI only intervenes to protect users, never to silence normal activity. 🦅
— WLFI (@worldlibertyfi) September 5, 2025
WLFI Freezes Spark Controversy
The frozen wallets included a mixture of addresses flagged as high-risk and linked to phishing attempts. In a statement, WLFI emphasized that “We do not seek to blacklist anyone…WLFI only intervenes to protect users, never to silence normal activity.” Of the 272 blocked wallets, 79% were reportedly connected to phishing activity.
3/
— WLFI (@worldlibertyfi) September 5, 2025
Breakdown of the 272:
• 215 (≈79.0%) tied to a phishing attack—we stepped in preemptively to stop hackers from draining funds and are working with the rightful owners to secure/move assets.
• 50 (≈18.4%) owners reported compromise via support; we blacklisted at their…
Justin Sun initially criticized WLFI for freezing his fund, which he claimed was part of deposit testing. Following discussions, WLFI clarified that several addresses—including some involved in the token dump after public trading—were blocked to protect the broader community.
User Complaints and Market Reaction
Despite WLFI inviting victims to submit their details for faster resolution, some users remain frustrated. Bruno Skvorc, developer relations officer at Polygo (POL), reported that his funds remain inaccessible, highlighting ongoing user experience issues.
The market response has been mixed. WLFI token prices retraced about 14% over the past week, while Binance’s top traders indicate a neutral position. Open Interest (OI) for WLFI also shows signs of speculative recovery, rising above $900 million after dropping to $780 million.
Also Read: Trump Family’s World Liberty Financial Burns 47 Million Tokens as WLFI Price Plummets
Justin Sun’s U-Turn and Market Confidence
Amid the controversy, Justin Sun pledged to support WLFI by purchasing $10 million worth of the token alongside $10 million in altcoins. “We believe U.S.-listed crypto stocks are an undervalued opportunity,” Sun stated, signaling renewed confidence in the project. The pledge coincided with a slight increase in speculative trading interest, suggesting some investors anticipate a strong recovery.
WLFI’s wallet freeze saga underscores the fine line DeFi projects walk between security and user trust. While some investors remain wary, strategic moves like Sun’s market support could restore confidence. The WLFI community now watches closely as the project navigates regulatory, security, and market challenges.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
