Justin Sun, founder of the TRON blockchain, has lost about $60 million in value over the past three months, according to the latest blockchain analytics, as the crypto entrepreneur remains blacklisted by the project that froze his holdings.
A few months ago, World Liberty Financial (WLFI) blacklisted 272 wallets, citing broad security concerns following suspected phishing and suspicious activity. Among those addresses was one linked to Sun, an early backer of the project.
The WLFI token contract blacklisted an address linked to Sun, freezing WLFI at the address and stopping him from sending or receiving the tokens. During the same period, Sun challenged the blacklisting, maintaining that he had committed no wrongdoing.
Blacklist keeps Sun sidelined as value erodes
Sun’s assets were blacklisted in September after he transferred roughly $9 million in WLFI tokens. The move triggered the token contract’s built-in throttling mechanisms. The China-born crypto entrepreneur had poured a significant amount of his funds into World Liberty and was publicly hyping that investment, so the news came as a surprise to many in the cryptocurrency space. He protested fiercely at first, saying he had done nothing illegal and that there was no justification for freezing his assets.
However, Sun noted he had invested more than just his money and effort in the project. Sun said he had offered strategic and financial support to the group in an effort to enhance its credibility.
Sun expressed his frustration over how much the blacklisting was affecting his ability to participate in governance and make an impact on the project. He added that, similar to his plans for building the World Liberty team, he had hoped the ecosystem would thrive.
However, he noted that the project had remained largely non-thriving despite his efforts, except for instances he described as “sponsored Powell lies.” He emphasized that his team had still pledged to push forward and ensure people were compensated.
WLFI has crashed by over 40% from its launch price in September, suggesting extreme pricing volatility around DeFi projects and celebrity-linked crypto assets.
Heavy Trump-linked bets fail to shield Sun
The Sun’s overall exposure to Trump-linked crypto holdings has been substantial, amounting to approximately $175 million. This translates into a $75 million investment in WLFI, the governance token of World Liberty Financial, and a $100 million investment in the TRUMP memecoin. A majority stake in the TRUMP memecoin made him the largest token holder, earning him access to exclusive events — including a gala dinner hosted by President Donald Trump.
Sun won the “Trump Golden Torbillon” watch, as well as financial investment and public recognition for supporting Trump’s crypto initiatives. However, his exposure, given his high-profile connections and investments, hasn’t immunized him against the future risks he will encounter.
That is due to a frozen WLFI token, which has left him unable to react to the market in any way — and it has exacerbated a 40% plunge in its price. It highlights the risks associated with the widespread adoption of politically connected and newly created digital assets.
World Liberty Financial notes that Trump’s three sons are co-founders of the deal, but it does not mention whether or when Sun’s wallet address might be removed from the blacklist.
For investors in DeFi and celebrity-backed crypto projects, the episode serves as a cautionary reminder, highlighting that even stars may fall short of their promises of financial success due to unforeseen hurdles.
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Source: https://www.cryptopolitan.com/suns-locked-world-liberty-tokens-shed-60m/
