WLFI Blacklists 272 Wallet Addresses for Security Reasons

TLDR

• WLFI blacklisted 272 wallets over security concerns.
• Justin Sun’s wallets were among those blacklisted.
• WLFI’s price dropped nearly 45% following the action.

World Liberty Financial (WLFI) has blacklisted 272 wallet addresses over the past seven days, according to on-chain data. This information has been confirmed by the project’s official Twitter account and statements from project representatives. The action involves high-profile figures and has significant implications for token holders, liquidity, and community sentiment.

These blacklisting actions are executed for security and compliance reasons, as stated on WLFI’s official channel. Justin Sun, Tron founder and major WLFI investor, is a central figure in this event. His associated addresses are among those blacklisted, which include wallets holding both unlocked and locked WLFI tokens.

Details of the Blacklisting Action

The mass blacklisting was first confirmed and reported by Zach Pokorny, a researcher at Galaxy. He indicated links to pre-launch KYC processes and ongoing investigations into the reasons behind the blacklist. Eric Trump, involved with WLFI’s broader strategy, had previously announced plans for WLFI’s stablecoin on Tron.

WLFI was launched on September 1, 2025, as a DeFi platform. During its token rollout, public disclosures of KYC and anti-theft mechanisms were made. The WLFI team has communicated via Twitter, stating a WLFI-designated wallet executed the blacklisting to prevent theft from the Lockbox. Their official stance is that normal trading activities will continue unimpeded.

Impacts on Funding and Market Prices

Justin Sun is a key investor in WLFI, initially purchasing $30 million worth of tokens in 2024. His total investment rose to approximately $75 million by mid-2025. Despite the actions, there has been no announcement of new funding or grants in direct response.

WLFI’s price hit an all-time low of $0.16, down nearly 45% from its ATH. On-chain data shows 272 wallets were blacklisted, including significant portions associated with Sun. The blacklisting impacts governance and staking tokens directly, while indirectly affecting associated parties like the Tron’s TRX token.

Community Response and Governance Concerns

Community sentiment reflects concerns over the balance of decentralization and security measures. Users have expressed worries about centralization and transparency due to these actions. However, WLFI assures that the blacklist is to prevent user losses, not to suppress legitimate activities.

While some highlight historical parallels with similar DeFi blacklist cases, this event stands out due to its scale and the involvement of prominent investors. Current discussions focus on trust, governance rights, and the role of intervention in decentralized protocols.