World Liberty Monetary (WLFI) defends its determination to freeze a whole lot of wallets, together with Tron Fund Justin Solar’s, saying the transfer is meant to guard customers from phishing-related compromises fairly than curbing regular transactions.
“WLFI intervene solely to guard customers and never silence regular actions,” the undertaking writes to X.
We have been listening to group considerations concerning the latest pockets blacklist. Transparency first: WLFI solely intervene to guard customers and doesn’t silence regular actions. 🦅
-WLFI (@worldlibertyfi) September 5, 2025
WLFI mentioned this week that 272 wallets have been blacklisted, of which round 215 have been linked to phishing assaults and 150 have been compromised through help channels.
Justin Solar’s WLFI handle was frozen on Friday after performing a number of small “distributed check” transfers of the unlocked tokens at launch.
Outbound transfers from sun-tagged wallets made it appear to be a widely known WLFI investor was promoting tokens, however Onchain Information attracts one other image.
In an X submit, Nansen founder Alex Svanevik identified that Solar’s transfers didn’t match the timeline of WLFI token decline.
In line with Nansen knowledge, Justin Solar handed over 09:18 UTC on September 4th (50 million WLFI price about $9.2 million after the steepest tokens).
Nansen’s Onchain knowledge reveals a $12 million WLFI switch from HTX to Binance by a third-party market maker.
The tokens have been borrowed utilizing HTX’s personal capital as a part of a each day rebalancing, however the transfer occurred after WLFI was too small to maneuver by way of the market with the sharpest decline in WLFI.
As soon as deposited on the binance, it’s inconceivable to inform whether or not the token was bought or just held.
As an alternative, market contributors level out widespread brief circuits and dumping of WLFIs by way of market makers and buying and selling desks throughout a number of exchanges as actual drivers of crashes.
OnChain information this view. The switch from Bitgo to Flowdesk, flagged by Nansen, coincided with the beginning of the WLFI slide and have become an necessary knowledge level in explaining the sale.
In the meantime, WLFI’s determination to freeze funds associated to the crash has prompted nervous chatter amongst whales, market makers and different buying and selling desks the place tokens may very well be frozen by literal fiats.
“If they’ll do this to the Solar, who’s subsequent?” an individual aware of conversations amongst giant market contributors instructed Coindesk.
In line with Coingecko, WLFI is at the moment buying and selling at $0.18. It is down 40% because the itemizing.
