The recent financial maneuverings in the cryptocurrency space surrounding the Trump family’s projects have taken a dramatic turn, as billionaire Justin Sun finds himself at odds with World Liberty Financial. Once seen as a prominent supporter, Sun has encountered unexpected backlash after a controversial transaction involving a significant sum of cryptocurrency linked to the Trump-backed initiative.
On Friday, Sun publicly disclosed via X that World Liberty Financial had frozen over $100 million of his investments in their cryptocurrency. As an early investor, Sun expressed his distress over the situation, stating, “As one of the early investors, I joined together with everyone—we bought in the same way, and we all deserve the same rights.” The fallout comes after Sun transferred $9 million worth of the WLFI token shortly before the price experienced a steep decline of approximately 40%, dropping to around 19 cents since its trading launch on Monday.
Blockchain intelligence sourced from Arkham Intelligence indicates that World Liberty Financial’s decision to freeze Sun’s wallet directly resulted from his recent transfer of tokens. This action has sparked a heated exchange, with Sun maintaining that he bears no responsibility for the cryptocurrency’s plummeting value. He commented on X, asserting, “No buying or selling was involved, so it could not possibly have any impact on the market. I am innocent.”
Despite Sun’s plea for vindication, a spokesperson for World Liberty Financial had yet to respond to inquiries regarding the incident, leaving the rationale behind the freeze unclear. Meanwhile, Sun’s representatives also remained silent on the matter.
Interestingly, after declaring his innocence, Sun announced plans to invest $10 million in both ALTS and WLFI, reinforcing his commitment to the project and underscoring his previous investments. This sudden fallout is notable, particularly because World Liberty Financial—co-founded by Donald Trump and his sons—aims to merge traditional banking services with decentralized financial systems through blockchain technology.
Sun’s connection to the project isn’t just monetary; he has been a vocal supporter of Trump, previously stating that any success he has had in cryptocurrency is attributable to the former president. His substantial investments in World Liberty Financial and its associated tokens positioned him as one of the largest stakeholders in this sphere.
Critics have scrutinized Sun’s lavish financial backing of Trump’s cryptocurrency ventures, alleging that it bordered on influence peddling, especially in light of the ongoing legal challenges he faces from the Securities and Exchange Commission, which claims he violated securities laws. While Sun denies the allegations, there has been speculation regarding the potential outcomes of his legal battles, which he is currently in discussions to resolve.
This unfolding drama raises questions about the future dynamics within the Trump crypto enterprise and how the rift with a major investor like Sun might impact the initiative’s prospects. Despite the tension, the broader cryptocurrency landscape continues to evolve, with many keeping a close eye on developments intertwined with prominent political figures and their ventures into this volatile and rapidly changing market.
