Analysis of the case of Justin Sun: Controversy and blockchain evidence in the WLFI case

Justin Sun defends his position against accusations of WLFI token manipulation

The team at World Liberty Financial (WLFI), backed by U.S. President Donald Trump, has blocked the wallet address of cryptocurrency entrepreneur Justin Sun, citing possible market manipulation following a 14% drop in the token's value last Friday. Sun has responded by defending his innocence while blockchain data provides a contradictory timeline to the accusations.

Frozen funds and transfer of 50 million WLFI under scrutiny

The WLFI token experienced an additional drop of 1% at the close of this edition, following a 14% plunge the day before, raising alerts about possible market manipulation.

The WLFI team focused its investigation on a transfer of 50 million WLFI tokens from Justin Sun's address, valued at approximately $9.03 million at the time. According to current data from the Arkham Intelligence platform, the wallet still contains 545.1 million WLFI tokens with an approximate value of $100.6 million.

Following the trail of these transactions, the team has blacklisted Sun's wallet address and blocked his WLFI funds.

Sun publicly responded through a post on the social network X, urging the World Liberty Financial team to unlock the tokens and highlighting his role as an early investor in the project. The founder of Tron (TRX) emphasized that "As one of the early investors, I joined along with everyone – we bought in the same way, and we all deserve the same rights."

In another post, the entrepreneur explained in detail the operations that triggered the alarm, specifically mentioning some general test deposits followed by the transfer of 50 million tokens. Sun describes this last transaction as a "directional dispersion" and not a sale that could have impacted the market price.

Blockchain data analysis supports the defense of Tron founder

Alex Svanevik, CEO of Nansen, a renowned blockchain analytics platform, shared screenshots of the analysis conducted by Nansen's AI agents that apparently exonerate Justin Sun from any direct involvement in the drop of WLFI's price on Thursday.

The technical analysis of AI highlights that massive deposits on exchange platforms were the main catalyst for the drop, occurring between 2:19 GMT and 2:51 GMT, while the transfer of 50 million WLFI took place later at 9:18 GMT.

Justin Sun has reposted this data with the message "I am innocent" to strengthen his defense. It is worth remembering that Sun was the winner of an invitation to Trump's Gala Dinner at the end of May, based on his possession of Official TRUMP tokens valued at over $22 million.

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