Justin Sun, founder of the Tron blockchain, saw his frozen holdings of World Liberty Financial’s WLFI token shed over $11 million in value on Friday as the Trump-backed project moved to dismiss concerns over its recent borrowing activity.
WLFI fell 15% over the past 24 hours, according to The Block’s price page, marking a decline of more than 74% since the token first became tradeable last year.
Sun initially invested $30 million into World Liberty Financial in late 2024, before the token’s trading debut the following year. He later accumulated a position in WLFI tokens worth roughly $75 million alongside a $100 million commitment to Donald Trump’s TRUMP memecoin.
World Liberty blacklisted the wallet linked to Sun last year after it moved roughly $9 million in WLFI, effectively freezing the tokens and preventing transfers or sales.
Blockchain analytics platform Bubblemaps estimates Sun’s frozen WLFI holdings of roughly 545 million tokens are now worth about $45 million, and said on X that the position is down over $80 million from earlier valuations.
World Liberty dismisses liquidation concerns
The drop follows scrutiny of World Liberty’s activity on the lending protocol Dolomite, where onchain data shows the project deposited billions of WLFI tokens as collateral to borrow tens of millions of dollars in stablecoins on Thursday. Adding to the controversy, Dolomite co-founder Corey Caplan serves as an advisor to World Liberty Financial.
Critics warned that the position could pose a risk of bad debt for lenders if WLFI’s price were to fall sharply. World Liberty pushed back on those concerns in a series of posts on X, calling them “FUD” and insisting the position is “nowhere near liquidation.”
“We are nowhere near liquidation — and frankly, even if markets moved dramatically against us, we’d simply supply more collateral,” the team said.
The project argued that acting as an “anchor borrower” on Dolomite helps generate higher yields for other users, while maintaining confidence in WLFI despite the token’s steep decline.
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