How exactly did Sun get liquidated?

A full timeline review of the $WLFI story
He invested 75 million USD, still carrying the project advisor title—but the project team still froze a $100 million position with one click
This happened last September, with WLFI as the main subject, backed by the Trump family
Xiaoshuai revisited the timeline:
Sun was one of WLFI’s earliest largest external investors. He cumulatively poured about 75 million USD into buying coins, and he also publicly helped the project stand behind it and promote token sales. After the launch, the token price crashed. On-chain data showed that a wallet associated with him transferred out 9 million WLFI.
On September 4, the project team directly added this address to the blacklist. They froze 595 million WLFI that were still unvested (worth 107 million USD at the time), plus a bunch of locked-in tokens—so the total impact was reportedly over 100 million USD, even more.
The project team’s talking point was: protect the community and prevent market manipulation.
Sun jumped up to shout: the transfer was just a routine test—no tokens were sold. The project team’s unilateral freeze violated the principle of decentralization. As an early supporter, “I bought in just like everyone else, and I should enjoy the same rights.”
He even promised to add another 10 million USD worth of WLFI, plus another 10 million USD of associated stocks, to show his sincerity.
So what happened next?
As of today, April 2026, the freeze still hasn’t been lifted. Sun’s holdings shrank from about 100 million USD at the time of the freeze down to 45 million—49 million. His total unrealized loss is 60 million—80 million USD, and the single-day biggest drop was over 10 million.
There’s been no further development on the court lawsuit, and the voices demanding rights protection have shifted from “hot discussion” to “ongoing losses.”
But the point I want to make isn’t how much money Sun lost.
The real question is: if a contract has an admin key that can freeze any address, can it still be called DeFi?
Crypto folks have been saying for ten years, “Not your keys, not your coins.” Now the upgraded version is here— even if you hold the private key, the project team can still make your coins on-chain turn into a pile of numbers that are just for show.
What kind of player was he? Someone who invested 75 million, acted as an advisor, and even sat at the same table as the project team. He was frozen for 8 months with no way to appeal. What are the little chips retail investors hold worth in front of the admin key?
As for so-called “decentralization,” many times it’s just the project team’s marketing script when things are going smoothly. When things turn bad, a blacklist can be pulled up anytime.
So disappointing.