Data shared by Bubblemaps shows the frozen tokens tied to Sun have lost about $60 million in value since the blacklist was applied, after a $9 million WLFI transfer flagged by the project. The standoff surprised people given Sun’s close public alignment with the Trump crypto ecosystem, including his status as the largest holder of the TRUMP meme coin and appearances alongside Donald Trump.
Justin Sun Still Locked Out
Justin Sun’s backing of World Liberty Financial, the decentralized finance project linked to President Donald Trump and his family, took a turn as the crypto billionaire is still blacklisted by the project more than three months after the dispute began. Despite Sun committing an impressive amount of capital and publicly aligning himself with the Trump-backed ecosystem, his relationship with World Liberty is still strained, and the financial impact has continued to mount.
According to data that was shared this week by blockchain analytics firm Bubblemaps, Sun’s locked WLFI holdings declined by roughly $60 million in value since the blacklist was applied. The blacklist was triggered after Sun moved around $9 million worth of WLFI tokens, which World Liberty flagged as grounds for punitive action. As a result, the WLFI token contract froze an address linked to Sun, preventing him from sending, receiving, or otherwise accessing the tokens.
The move surprised many in the crypto community given the scale of Sun’s financial support for Trump-affiliated crypto ventures. In total, Sun committed approximately $175 million to projects tied to the Trump brand, including a $100 million purchase of the TRUMP meme coin and a $75 million investment in WLFI, the governance token of World Liberty Financial.
His purchases made him the largest holder of the TRUMP token, and his involvement extended beyond just capital allocation. Sun also attended a gala dinner hosted by Trump and was awarded a “Trump Golden Torbillon” watch.
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Sun consistently pushed back against the blacklist by arguing that the action was unjustified. In September, he said he contributed not only capital but also trust and long-term support for the project, and explained that his intention was to grow alongside the World Liberty team and its community. He maintained that his tokens were “unreasonably frozen” and denied any wrongdoing related to the transaction that triggered the blacklist.
Since trading began in September, the token has fallen by more than 50%, which amplified the losses tied to Sun’s immobilized holdings. World Liberty lists President Trump’s three sons as co-founders, further tying the project’s governance and public image to the Trump family. For now, Sun is still sidelined from his WLFI position.
Source: https://coinpaper.com/13279/justin-sun-faces-mounting-losses-after-world-liberty-blacklisting
