Sun Yuchen has been blacklisted by WLFI! 3 billion tokens frozen?

The WLFI project initiated by the Trump family has clashed with Sun Yuchen, the founder of Tron, staging a farce of "black eating black," completely tearing apart the power tricks behind the decentralized world.

The $WLFI project team suddenly blacklisted Sun Yuchen's wallet address, directly locking up 540 million unlocked Tokens and 2.4 billion locked Tokens in his hands, totaling approximately 2.94 billion. The project team directly revealed their hand, suspecting that the HTX exchange, under Sun Yuchen, has been long-term selling user Tokens to maliciously suppress the price of WLFI.

The catalyst for this blacklist incident was the anomaly in on-chain data. Arkham Exchange data shows that Sun Yuchen transferred $9 million worth of WLFI assets to another address. Onchain Lens also revealed that Sun Yuchen deposited over 5.28 million WLFI, worth about $1.19 million, into HTX in the past couple of days. These frequent large transfers raised suspicions among the project team.

Sun Yuchen quickly denied on social media, saying: "We just did a few transactions for exchange recharge testing, the amount is very small, and we also dispersed the addresses, there were no purchases or sales at all, and it is impossible to affect the market."

Justin Sun's holdings on WLFI are quite astonishing. Arkham Intelligence data shows that he controls approximately 595 million WLFI, worth up to 107 million USD at current market value. Part of these tokens was purchased early on when he spent 75 million USD to buy 3 billion tokens, while another part consists of 600 million tokens received after the token unlock. He is undoubtedly a WLFI token mogul. Onchain Lens also revealed that Justin Sun recently transferred 50 million WLFI (worth 9.12 million USD) to a new wallet, likely to be deposited into HTX exchange.
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The blacklist action initiated by WLFI is rare in the blockchain industry, especially targeting industry big shots like Sun Yuchen. This exposes the centralized nature of decentralized projects—project parties have significant power and can freeze anyone's assets at will.

As soon as the blacklist news was announced, the price of WLFI shot up like a roller coaster. It first rose nearly 10%, and investors thought it was a good thing to relieve selling pressure, but before long, the price dropped again, ending the day with a decline of over 16%.

Sun Yuchen's actions have been questioned, and it is simply a meticulously designed "pump and dump" scheme. He first reassured investors on social media, promising that he "would not sell," stabilizing market sentiment and encouraging investors to hold on. Next, HTX exchange launched a WLFI deposit activity with an annualized return of 20%. Such high returns are irresistible to retail investors, who rushed to deposit their Tokens on the platform. Finally, Sun Yuchen transferred the Tokens deposited by users in batches to exchanges like Binance through multiple seemingly unrelated addresses for sale. Ordinary investors could hardly identify the source of the selling pressure.

WLFI is not just an ordinary cryptocurrency project; it has a close relationship with the Trump family. The Trump family holds a large number of WLFI Tokens through DT Marks DEFI LLC, totaling 22.5 billion. Trump himself directly holds 15.75 billion, which is valued at approximately $6 billion at current market prices. Alt5 Sigma spent $1.5 billion to purchase WLFI Tokens, with 75% of the net sales proceeds (several hundred million in cash) going directly into the Trump family's pockets.

The WLFI Token unlock event has already attracted market attention. On September 1st, WLFI's first Token unlock released 20% of the presale tokens for early investors. This blacklist incident could affect more than just WLFI itself; it may have a significant impact on the entire "political token" track. It is a representative of the "political token" sector, and its performance directly influences the direction of the entire track.

The SEC has begun to investigate the relationship between Alt5 and World Liberty. Once the regulatory agency intervenes, the WLFI ecosystem might just collapse.

After Sun Yuchen was blacklisted, the top market maker Cumberland quietly entered the scene. On-chain data shows that they received 10 million WLFI from BitGo, worth $2.05 million. This institution is also the market maker for TRUMP, and now WLFI has gathered three major market makers: DWF Labs, Jump Trading, and Cumberland.
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Although the market is not completely hopeless yet, this farce has served as a wake-up call for all investors: in the unregulated realm of cryptocurrency, the project teams hold too much power, and token holders may face various non-market risks at any time. Investments should be approached with caution!