World Liberty Monetary (WLFI) is defending its determination to freeze lots of of wallets, together with Tron discovered Justin Solar’s, saying the transfer was meant to guard customers from phishing-related compromises, to not stifle regular buying and selling.
“WLFI solely intervenes to guard customers, by no means to silence regular exercise,” the mission wrote on X.
We’ve heard neighborhood issues about current pockets blacklists. Transparency first: WLFI solely intervenes to guard customers, by no means to silence regular exercise. 🦅
— WLFI (@worldlibertyfi) September 5, 2025
WLFI mentioned earlier this week that 272 wallets had been blacklisted, with roughly 215 of these linked to a phishing assault and 150 compromised by way of help channels.
Justin Solar’s WLFI tackle was frozen on Friday, following a number of small “dispersion take a look at” transfers between his personal wallets after claiming unlocked tokens at launch, none of which had been gross sales.
The outbound transfers from Solar-tagged wallets made it seem that the big-name WLFI investor was promoting his tokens, however onchain information paints a special image.
In a put up on X, Nansen founder Alex Svanevik identified that Solar’s transfers did not match the timeline of WLFI’s token decline.
Nansen information exhibits Justin Solar transferred 50 million WLFI price about $9.2 million on Sept. 4 at 09:18 UTC — three to 5 hours after the token’s steepest drop — which means the switch adopted the crash somewhat than induced it.
Onchain information from Nansen exhibits a $12 million WLFI switch from HTX to Binance by a third-party market maker.
The tokens had been borrowed utilizing HTX’s personal capital as a part of a routine rebalance, however the transfer got here after WLFI’s sharpest declines and was too small to have moved the market, contemplating WLFI has a every day buying and selling quantity of over $700 million.
As soon as deposited on Binance, it’s not possible to find out whether or not the tokens had been offered or just held.
Market members as a substitute level to broad shorting and dumping of WLFI by way of market makers and buying and selling desks throughout a number of exchanges as the actual driver of the crash.
Onchain data again this view: a switch from BitGo to Flowdesk flagged by Nansen, coincided with the beginning of WLFI’s slide and has turn into a key datapoint in explaining the sell-off.
In the meantime, WLFI’s determination to freeze funds linked to the crash set off nervous chatter amongst whales, market makers, and different buying and selling desks that their tokens may very well be frozen by literal fiat.
“If they’ll do it to Solar, who’s subsequent?” an individual acquainted with conversations amongst massive market members advised CoinDesk.
WLFI is at the moment buying and selling for $0.18, in keeping with CoinGecko. It is down 40% since itemizing.
