World Liberty Financial has blacklisted a wallet associated with Tron founder Justin Sun — one of World Liberty’s biggest advocates — effectively freezing over 540 million unlocked tokens and 2.4 billion locked WLFI tokens held by Sun.

Onchain data shows that the wallet was blacklisted after Arkham Intelligence flagged that it had transferred $9 million worth of World Liberty’s native token WLFI.

The transfer raised fears of a potential large token dump and market manipulation, especially as WLFI’s price dropped over 16% in the same period.

This story is an excerpt from the Unchained Daily newsletter.

“Our address only carried out a few general exchange deposit tests with very small amounts, followed by an address dispersion. No buying or selling was involved, so it could not possibly have any impact on the market,” wrote Sun in a Thursday X post. 

Sun invested a total of $75 million in WLFI, making him the project’s largest individual investor and securing him an advisory position at the entity. Before the blacklisting, his total holdings were valued at nearly $900 million, much of which remains locked or vested.