Justin Sun remains blacklisted by World Liberty Financial [WLFI], three months after the project froze hundreds of wallets during what it described as a broad security intervention.
New data from Bubblemaps and Arkham shows that the Sun’s locked WLFI tokens have plummeted in value by roughly $60 million since September, despite the project maintaining that the freeze was necessary to protect users.
WLFI confirms 272 wallets were frozen — including one linked to suspected misappropriation
The dispute dates back to early September, when WLFI disclosed it had blacklisted 272 wallets. The move followed reports of a major phishing incident and other suspicious activity.
According to the project’s public breakdown:
- 215 wallets [≈79%] were tied to an active phishing attack.
- 50 wallets [≈18.4%] belonged to users who reported compromise and requested protection.
- 5 wallets [≈1.8%] were flagged for high-risk exposure.
- 1 wallet [≈0.4%] was flagged for “suspected misappropriation of other holders’ funds.”
WLFI did not name the wallet in question. Still, subsequent reporting from Reuters and chain-analysis work by Bubblemaps linked the final category to Justin Sun.
Sun denied wrongdoing at the time and argued the freeze was “unreasonable.”
WLFI insisted the action was not targeted, stating:
“We do not seek to blacklist anyone. We respond when alerted to malicious or high-risk activity… User safety > everything.”
Bubblemaps shows Sun’s locked WLFI tokens have cratered
Bubblemaps’ latest analysis shows Sun is still unable to access his WLFI holdings. As the project’s token price fell sharply across the quarter, the value of his locked balance dropped by around $60 million, according to their estimates.
Arkham Intelligence data supports the trend. A review of Sun’s WLFI balance history shows a dramatic decline over the last three months, reflecting the project’s fall in market valuation.
WLFI currently trades near $0.14, with Sun holding about 545M, valued at roughly $74 million, according to market data.
Additionally, the Arkham data indicated that Sun held approximately 3 billion WLFI tokens; however, a significant decline was observed around August and September, resulting in the current number recorded.
Source: Arkham
What the standoff means going forward
While the project says the freeze protects community members, the incident continues to raise questions about transparency, enforcement standards, and the long-term decentralization claims of emerging tokenized funds.
There has been no update from WLFI about the locked funds.
For now, on-chain data confirms that Sun’s WLFI position has lost tens of millions in value while remaining inaccessible, and neither side appears close to resolving the stalemate.
Final Thoughts
- The prolonged blacklist highlights the growing friction between security-driven controls and the expectations of decentralized token holders.
- Justin Sun’s $60 million paper loss shows how quickly value can evaporate when access to assets is restricted, raising broader questions about governance and risk management in emerging tokenized finance ecosystems.