Justin Sun Pledges $20M Buy Following WLFI Wallet Freeze

TLDR

Table of Contents

WLFI froze Justin Sun’s $3B wallet after a $9M transfer to HTX exchange.
Sun announced a $20M buy in WLFI and ALTS despite the wallet block.
WLFI token value has dropped 40% since launch, now trading near $0.18.
Trump-linked WLFI allocated 22.5B tokens to his company, boosting his reported wealth.

Justin Sun, founder of Tron, has pledged a $20 million purchase of WLFI and ALTS tokens after his wallet was frozen by World Liberty Financial (WLFI). The move comes during a sharp decline in WLFI’s value and a public dispute between Sun and the Trump-backed project.

Wallet Freeze Sparks Conflict

World Liberty Financial froze Justin Sun’s wallet after he transferred $9 million worth of WLFI tokens to his HTX exchange. The freeze affected over 2.9 billion tokens, including both locked and unlocked holdings, valued at more than $3 billion.

WLFI has not issued an official statement explaining the freeze. However, on-chain trackers had flagged large transfers linked to Sun, leading to speculation that he was moving tokens into exchanges following WLFI’s Binance listing.

Sun denied selling tokens and described the freeze as unfair. In a post on X, he wrote that “tokens are sacred and inviolable,” and that unilateral freezes violated the “legitimate rights of investors.” He also said his transfers involved only small deposit tests and did not influence the market.

The situation has raised questions about investor rights and governance. Freezing wallets is rare in decentralized projects, and the decision has fueled concerns over transparency and control within WLFI.

$20 Million Pledge to Reaffirm Support

In response to the freeze, Sun announced he would purchase $10 million in WLFI tokens and $10 million in ALTS shares. He stated that his goal was to show continued commitment to the project, despite the dispute with its leadership.

Sun already holds a $75 million stake in WLFI, making him one of its largest investors. He emphasized that he has “no plans” to sell his holdings and remains aligned with the project’s growth. His pledge was made public through his X account, where he also tagged the Trump family.

ALTS, the Nasdaq-listed ticker for Alt5 Sigma, recently announced a $1.5 billion WLFI treasury strategy. Sun’s buyback plan is aimed at supporting both WLFI and ALTS in the market.

Market observers noted that while some see Sun’s pledge as a show of confidence, others believe it may be a move to protect his reputation after the wallet block. Regardless, the $20 million commitment signals that he is willing to increase his financial exposure during a period of market pressure.

WLFI Faces Market Decline

WLFI has dropped 40 percent in value since its launch last month. The token debuted at an $8.6 billion valuation but now trades around $0.18, according to CoinMarketCap data. The decline has created concern among investors who expected stability from a project with high-profile backers.

WLFI allocated 22.5 billion tokens to former U.S. President Donald Trump through one of his companies. At launch, the allocation boosted Trump’s reported paper wealth by more than $4 billion. While this attracted attention, the recent selloff has overshadowed early enthusiasm.

The project’s leadership has not confirmed whether Sun’s actions contributed to the market decline. Still, the wallet freeze and ongoing dispute have added uncertainty. With Sun continuing to insist that he will not sell WLFI, the conflict highlights growing tension between large investors and project leaders.

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