Justin Sun Coin Dumping Controversy
Justin Sun is well known in the cryptocurrency world for both good and bad reasons. On the one hand, he is the creator of the TRON cryptocurrency, but on the other, he has been sued by both the SEC and Coinbase over allegations of market manipulation and dishonesty.
Unfortunately, we wish we could say things were looking up for Justin Sun, but the first week of September sees him once again the subject of scrutiny for offloading a large number of tokens—allegedly perpetrating a pump and dump scheme. Keep reading to learn more.
Justin Sun’s WLFI Wallet is Frozen
The event that kicked off this controversy was when a wallet address associated with Justin Sun (which held a whopping 595 million WLFI tokens) was blacklisted and frozen this week.
When both sides of this debacle were approached, Justin Sun claimed it was a mistake, while World Liberty Financial claimed Justin Sun had transferred 60 million tokens in the preceding 24 hours, something which they believe indicated his intent to offload a large number of the tokens.
Why Is Offloading Tokens Bad?
In general, if you choose to buy or sell your holdings, the presses won’t be stopped to report on you. But Justin Sun has been in trouble for this before. He had been involved in a number of pump and dump schemes (where the value of a token is artificially inflated just until the creators can cash out) as well as a lot of dishonesty in the projects he’s been involved in.
Based on his past record, we have no doubt that Justin Sun intended to offload the 60 million WLFI tokens. But this brings up another problem—and that is the fact that World Liberty Financial can just stop him from trading with the click of a button.
While offloading tokens as part of a pump-and-dump scheme is bad, the centralization World Liberty Financial displayed in this instance was worse—causing many individuals to worry about the future of the cryptocurrency as a whole.
Especially because Justin Sun states that his transfer was only a “deposit-test.” That being said, he has invested approximately $30 million USD in the project and currently holds 891 million tokens—meaning he is no small shareholder.
To make matters worse, there is evidence of Justin Sun going around the blacklist by using unsavory direct-to-consumer means of sales. Much of this is unproven, however, so you will need to draw your own conclusions.
(This is a developing story, and it is unclear Justin’s intent with the transfer.)
What is WFLI?
WFLI stands for World Liberty Financial, a cryptocurrency token specifically endorsed by US President Donald Trump and his family.
WFLI was designed as a governance token that can be used on the World Liberty Financial website to retain voting rights on future endeavors. Like most projects in the cryptocurrency space, the exact intent of the blockchain remains unclear.
On one hand, it is reportedly a DeFi ecosystem, without the decentralization these blockchains usually provide. On the other hand, World Liberty Financial plans to eventually host their own stablecoin.
Regardless, the token launched on Monday, September 1st, 2025, and while it rose to $0.32 for a brief period of time, it crashed not much later to $0.18 due to the announcement of Justin Sun’s transfer.
Is World Liberty Financial a Pump and Dump Scheme?
In our opinion, yes—World Liberty Financial is just a fancy title for the Trump family stealing money from investors who don’t know any better. And we aren’t the only ones who think this. Due to mounting publicity, many other platforms, including Bloomberg, have mentioned that this token is likely going to do more harm than good to the general public.
In response to mounting public pressure, it was decided early on that investors in World Liberty Financial (except for the Trump family, of course) can only sell up to 20% of their holdings in order to prevent investors from pumping and dumping.
Obviously, this is very bad press for Justin Sun, who transferred just about 6% of what he owns in WFLI…meaning he very well could have intended to sell those holdings.
Either way, we do not trust World Liberty Financial at all, due to the fact that there seems to be no concrete information on their mission as a blockchain. While this doesn’t necessarily make them a pump and dump scam, it definitely doesn’t make them look good either. It also makes Justin Sun look quite guilty, with his transfer occurring just 4 days after launch.
Should You Invest in World Liberty Financial?
We think it is a terrible idea to invest in World Liberty Financial. Not only are there the pump and dump rumors above, but there is also the fact that the blockchain is centralized enough to blacklist Justin Sun’s wallet.
Remember, the entire point of cryptocurrency when it started was to return the power of money to the people. World Liberty Financial is the opposite of that—it’s giving money right back to the government. Not only that, but thanks to Justin Sun, we now know your wallet can be blacklisted and frozen at any time—something which should never be a fear in cryptocurrency.
No matter your risk level, it’s probably best to stay away from the WFLI token, especially because it appears Justin Sun plans to sell a large portion of what he owns as soon as he is able—unless you actually believe he was just “testing” deposits with 60 million tokens.
Of course, it is your choice whether or not to invest in cryptocurrency at the end of the day. Just be sure not to invest any money you don’t intend to lose entirely.
Overall, we aren’t sure where we stand on the Justin Sun WFLI issue. We obviously don’t trust Justin Sun after everything he has done over the years, but we also don’t trust World Liberty Financial. For these reasons, we recommend staying as far away from investing in WFLI as possible, because this token might just be a scam after all.
