World Liberty Financial responds to the blacklisting of 272 Wallets: everything is to protect users, not to suppress normal transactions.

The decentralized finance (DeFi) project World Liberty Financial under the Trump family has recently confirmed the blacklisting of 272 wallet addresses and explained that this move aims to protect users from fraud and risk. At the same time, the project team blacklisted the wallet of TRON founder Justin Sun, accusing him of allegedly selling tokens to investors. On-chain detective ZachXBT praised the team's proactiveness but also warned that this move could damage their reputation. The price of WLFI tokens has rebounded after experiencing a significant fall.

WLFI Team: Pumping the Wallet aims to protect users rather than restrict normal activities.

World Liberty Financial issued a statement on the X platform (formerly Twitter), explaining why they blacklisted 272 wallets. The team stated that this move is entirely to prevent harm to users and to assist those who have already been affected, rather than to suppress normal trading activities.

According to the detailed data released by the team, among the 272 wallets that were blacklisted:

• 215 addresses (79%) have been blacklisted due to phishing attacks. The team is intervening to prevent hackers from stealing funds and is working with legitimate owners to ensure asset safety.
• 50 Addresses (18.4%) were blacklisted due to users reporting being deceived by a fake customer service team, in order to help these Token holders recover their funds.
• 5 Addresses have been blacklisted due to high-risk exposure, while the remaining 1 Wallet Address is under review for allegedly misappropriating funds from other holders.

It is worth noting that this move coincides with the WLFI team's decision to blacklist Justin Sun's Wallet. Previously, there were allegations that Justin Sun was selling the WLFI Tokens he held to investors. Although Justin Sun denied these allegations, claiming that the team had "unreasonably" frozen his tokens, on-chain data shows that addresses associated with him had transferred WLFI Tokens worth millions of dollars to exchanges, raising market speculation about dumping behavior.

As a result of this incident, the price of WLFI Token once fell to a historical low of 0.1632 USD. However, recently, the price of this token has rebounded, and the current trading price is approximately 0.1966 USD, with a daily increase of about 8%. According to previous reports, when the WLFI Token was launched on September 1, its market capitalization reached 7 billion USD.

ZachXBT Evaluation: Appreciates proactive actions, but needs to remain cautious

The well-known on-chain detective ZachXBT posted on X, expressing appreciation for the actions of the World Liberty Financial team. He stated that he was pleased to see the team take a more proactive approach than other projects (such as Circle), as this practice ultimately benefits the victims.

However, he also warned that blacklisting the wrong Address could cause irreparable damage to its reputation. ZachXBT added that project teams need to find a balance between action and reputation, and the vast majority of teams have failed in this regard.

Conclusion

The action of World Liberty Financial blacklisting a large number of wallets has drawn widespread attention in the crypto community, highlighting the challenges that DeFi projects face in balancing user protection with the principles of decentralization. While blacklisting fraudulent wallets can protect victims, this move also grants centralized power to the project team, especially when it involves well-known figures like Sun Yuchen, whose actions will be scrutinized more rigorously. The case of WLFI demonstrates that in areas where transparency and credibility are crucial, project teams need to act cautiously to maintain community trust and avoid potential reputational crises.