8-9-2025 – World Liberty Financial (WLFI), a Trump family-backed DeFi project, has blacklisted 272 crypto wallets, including one owned by TRON founder Justin Sun, to counter phishing attacks, triggering a 40% drop in its token price. The move aims to protect users from fraud, with WLFI stating that 215 wallets were linked to phishing schemes and 50 were compromised via fake support channels.
The blacklist, which includes Sun’s wallet after a $9 million token transfer, has sparked debate over transparency and centralized control in a project promoting decentralization. Sun, a major investor with a $75 million stake, called the freeze “unreasonable” on X, denying allegations of dumping tokens and pledging an additional $20 million investment to restore confidence.The market reaction has been severe, with WLFI’s token falling to $0.18 since its trading debut on September 1, reflecting investor concerns over governance and potential asset restrictions.
The blacklist, while intended to enhance security, underscores tensions between decentralized ideals and regulatory interventions, drawing comparisons to stablecoin sanctions. On-chain analyst ZachXBT praised WLFI’s proactive stance but warned of over-reliance on compliance tools, which could erode trust in the DeFi ecosystem.
