Justin Sun demands the release of $500 million worth of tokens, escalating the controversy.

San reacted to reports that his WLFI Token was unjustly frozen and requested the project party to lift the freeze. On-chain data reveals that World Liberty Fi had blacklisted two wallets associated with him.

San stated today on X that his WLFI Token was frozen without reason and demanded its release.

This controversy surfaced after it was identified that a blockchain tracking platform imposed restrictions on wallets related to Sun. According to the data, two wallets associated with him were blocked, and approximately $500 million worth of WLFI Tokens have been reported to be locked.

Sun requests the release of WLFI Tokens worth 500 million dollars.

According to Arkham Intelligence, Sun has sparked speculation that he is preparing to sell approximately 9 million WLFI tokens shortly after the token unlock. Sun received 540 million WLFI tokens at the time of the token issuance and had about 2.4 billion in rights reservation funds.

To the World Liberty Financials team and the global community,

As an early major investor in World Liberty Financials, I have provided not only capital but also trust and support for the future of this project. My goal has always been to grow together with the team...

— H.E. Justin Sun 👨‍🚀 ( Astronaut Version ) (@justinsuntron) September 5, 2025

The decision by Word Liberty Financial to freeze tokens was an extreme approach. Sun was one of the most prominent early backers during the presale round, and his participation accelerated the fundraising process. He argued that as one of the early members, he was entitled to the same respect and rights as his colleagues. He also stated that tokens are sacred and inviolable, and that should be the most fundamental value of the blockchain.

In the continuation of the statement, he called on the project party to respect the principles of DeFi and to unlock the token. He also warned that such unilateral actions could undermine trust in World Liberty Financial and potentially violate the rights of legitimate investors.

The funding restriction decision of Word Liberty Financial is primarily attributed to on-chain data indicating that Sun moved WLFI to the HTX exchange, where he has significant influence, raising suspicions that Sun is using the exchange to sell the Token.

Previous reports highlighted that HTX offers up to 20% annual yield on WLFI deposits. Further investigation revealed attempts to move funds to another major exchange, despite the fact that the Token is not yet listed on that exchange.

WLFI dropped to $0.18 amid the wallet issues of Sun.

The crypto entrepreneur denied the allegations, asserting that the transactions were legitimate remittances for experimental purposes. He stated that the movement of the Tokens was not an attempt to sell but rather a test of the infrastructure of HTX.

The community's reaction was critical towards Sun. Jacob King, the CEO of SwanDesk, wrote that it was madness for Sun to have to use ChatGPT to write an apology. He called on WLFI to avoid anything related to Sun and its associated partners.

The price of WLFI has fallen from its peak of $0.46 at launch to $0.186, representing a decline of over 40% from the post-launch price. After the issuance of the token, at least 29% of wallets have completely sold off, contributing to the current price drop. WLFI has not yet made an official comment and has not indicated any intention to unlock the token.

I feel that the freezing of funds by large-scale investors is a typical example of the instability of the cryptocurrency market. After all, even in a world touted as decentralized, there is the reality that someone's unilateral decision can freeze assets. I can understand Sun's argument, but considering that he himself has caused various controversies in the past, it is necessary to look at both sides of this issue.