Justin Sun Bets on WLFI with $20M Pledge After Wallet Freeze

Justin Sun, the founder of TRON, has announced plans to buy $20 million worth of WLFI tokens, the Trump-backed crypto project. This move is in response to proving his long-term commitment to the project after his wallet was frozen. This decision has sparked community uproar as it comes during a rising market doubts towards the new token.

WLFI Freezes Sun’s Wallet, Sparks Controversy

The conflict began when WLFI blocked Sun’s wallet following a $9 million transfer of WLFI tokens to his HTX exchange. The freeze covered 540 million unlocked and 2.4 billion locked tokens, worth more than $3 billion. 

The move surprised the crypto community because Sun had already put $75 million into WLFI’s token sale, making him one of the biggest supporters of the project. 

WLFI leaders gave no official reason for the freeze, but on-chain data showed Sun moving tokens to exchanges soon after WLFI was listed on Binance, which looked suspicious to some. Critics accused him of fueling WLFI’s steep decline.

Justin Sun Pushes Back With $20M Commitment

Sun, who is set to embark on a space journey, dismissed the allegations, calling them unreasonable. He explained that the transfers were small test deposits and dispersions, not sales that could impact the market. 

To show his commitment, he announced plans to market buy $10 million in WLFI tokens. He also pledged $10 million in ALTS shares, the Nasdaq-listed ticker of Alt5 Sigma, which manages WLFI’s $1.5 billion treasury strategy. In his X post, Sun tagged the Trump family directly and reiterated his long-term belief in WLFI.

The crypto community remains divided on Sun’s latest move. Supporters view the $20 million pledge as proof that he believes in WLFI’s future. Critics argue it is a calculated attempt to restore his reputation after being blacklisted by the project.

WLFI’s Price Struggles

WLFI is still under heavy selling pressure, even after recently removing 47 million worth of tokens from circulation. The token has dropped 40% in value since launch, falling from an $8.6 billion debut to about $0.18. 

Many investors are now cautious and question why the project would freeze the wallet of one of its biggest backers. Experts say this kind of move is rare in decentralized finance (DeFi) and could scare off both small and big investors. 

WLFI first gained big attention because of its ties to U.S. President Donald Trump. One of Trump’s companies received 22.5 billion WLFI tokens, adding over $4 billion to his reported wealth. 

The token launch brought excitement, but that hype has now been replaced by price swings and conflicts like the one with Sun. Also, as prices tumble, early excitement has given way to hard questions about governance and sustainability.

Either way, Sun’s actions highlight his determination to stay involved with WLFI despite the public fallout.