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Justin Sun Still Blacklisted by WLFI as Locked Stake’s Value Drops About $60 Million

WLFI has offered no timeline to unfreeze the address after a September security action that blocked 272 wallets.

Overview

  • Blockchain analytics firms Bubblemaps and Arkham report Sun’s WLFI holdings remain inaccessible and are down roughly $60 million since September.
  • WLFI says it froze 272 wallets in September as a protective move, citing phishing incidents, compromised users, high‑risk exposure, and one case flagged for suspected misappropriation.
  • WLFI did not publicly name the wallet flagged for suspected misappropriation, but subsequent reporting and chain‑analysis linked it to Sun, who denies wrongdoing and called the freeze unreasonable.
  • WLFI trades near $0.14, and Sun’s linked balance is about 545 million WLFI valued around $74 million, according to market data.
  • WLFI maintains that user safety is the priority, has not provided an update on unlocking the funds, and the unresolved standoff has intensified questions about governance and decentralization in the project.