A key backer of the Trump family’s cryptocurrency business has been blacklisted. Billionaire Justin Sun, who was close to the Trumps until recently, stated on X on Friday that World Liberty Financial, a company sponsored by Trump, had frozen over $100 million in cryptocurrencies that he had bought from the project. He said that because he was one of the original investors, he joined everyone else in buying the same thing and therefore everyone should have the same rights.
President Donald Trump attended a banquet in May to honor the largest purchasers of his memecoin, and Sun, a controversial cryptocurrency billionaire with an estimated net worth of over $12 billion, was a notable attendee. Sun now seems to have angered the president’s supporters by shifting some of his holdings to another cryptocurrency associated with Trump.
Arkham Intelligence’s blockchain analytics shows that Sun moved $9 million worth of WLFI on Thursday. According to statistics from Binance, the move happened after the price of the cryptocurrency dropped 40% to about 19 cents since it became trading on Monday. Blockchain data indicates World Liberty Financial frozen Sun’s wallet in response to his choice to move the tokens.
Sun begged that the price decline was not his fault, even though he admitted that he had moved part of the tokens. And he even offered to purchase $10 million worth of stock in WLFI and another $10 million worth of shares in a Trump-affiliated public firm. He stated on X in a Chinese-language post that “no buying or selling was involved, so it could not possibly have any impact on the market.” “I’m not guilty.”
A request for response from a World Liberty Financial representative was not immediately answered. A request for more comment was not answered by Sun spokespeople.
Sun versus World Liberty
The move by World Liberty Financial to freeze Sun’s coin may cause a rift with one of the most important and wealthy supporters of the Trump crypto project.
President Donald Trump and his sons, Eric, Barron, and Donald Trump Jr., are cofounders of the initiative, which was introduced in October. The objective of World Liberty Financial is to develop an application for decentralized finance, a cryptocurrency phrase that describes the placement of conventional banking functions like as lending and borrowing on the blockchain.
Sun, the creator of the blockchain Tron, said in January, shortly before President Donald Trump took office, that he had acquired a total of $75 million worth of World Liberty Financial’s crypto.
“I believe that President Trump @realDonaldTrump deserves all the credit for any cryptocurrency profits I have made,” Sun said.
The Chinese cryptocurrency tycoon then rose to become one of Trump’s memecoin’s largest holders.
Sun’s public acclaim of the 47th president and the tens of millions he spent on Trump cryptocurrency projects were criticized as being a form of influence peddling, particularly in light of the Securities and Exchange Commission’s ongoing lawsuit against the billionaire, which claims Sun broke securities law.
Any misconduct has been disputed by Sun. Sun’s attorneys and the SEC informed the case’s judge in February that they were discussing a possible settlement of the lawsuit.
