Trump Family’s Crypto Endeavor Freezes Out Major Supporter
The Trump family’s cryptocurrency initiative has taken a surprising turn, as it has effectively sidelined one of its prominent backers. On Friday, billionaire Justin Sun, who had previously enjoyed a close relationship with the Trump family, announced on X that World Liberty Financial, a venture backed by Trump, has frozen over $100 million worth of cryptocurrency he had acquired from the project. “As an early investor, I participated in the same manner as others, and we all deserve equal treatment,” Sun stated.
Justin Sun’s Controversial Actions Draw Backlash
Sun, known for his polarizing presence in the crypto sphere, reportedly has a net worth exceeding $12 billion and was a notable attendee at a dinner hosted by former President Donald Trump in May to honor significant investors in his memecoin. Recently, however, Sun seems to have fallen out of favor with Trump’s associates following his decision to move a segment of his holdings in another cryptocurrency associated with Trump. Blockchain data provided by Arkham Intelligence reveals that Sun transferred $9 million of the WLFI token on Thursday. This action came on the heels of a substantial 40% drop in the cryptocurrency’s value, which plummeted to approximately 19 cents since its launch on Monday, as reported by Binance.
World Liberty Financial Responds to Sun’s Token Transfer
In response to Sun’s token transfer, World Liberty Financial appears to have reacted by freezing his cryptocurrency wallet, as indicated by blockchain records. Sun expressed his frustration on X, stating, “To the World Liberty Financials team and the global community, as one of the early major investors, I have not only provided capital but also my trust and support for this project. My intention has always been to grow alongside the team.”
Sun Denies Market Impact from Token Transfer
While admitting to the transfer of some tokens, Sun insisted that he bears no responsibility for the subsequent decline in price. “There was no buying or selling involved, so it couldn’t have affected the market,” he stated in a translated post on X. “I am innocent.” A representative from World Liberty Financial has not yet responded to requests for clarification, nor have Sun’s spokespeople provided additional comments on the situation.
Sun’s Commitment to Future Investments
Following his assertion of innocence, Sun declared his intention to purchase $10 million worth of ALTS and $10 million worth of WLFI, referring to the tickers of a Trump-associated public company and cryptocurrency.
World Liberty Financial’s Freeze May Alienate Key Ally
World Liberty Financial’s choice to freeze Sun’s cryptocurrency could potentially drive away one of its wealthiest and most significant supporters. Launched in October, the project includes President Donald Trump and his sons—Eric, Barron, and Donald Trump Jr.—as co-founders. The mission of World Liberty Financial is to develop an application for decentralized finance (DeFi), a concept that aims to replicate traditional banking services such as lending and borrowing on the blockchain.
Sun’s Early Investment and Praise for Trump
In January, just ahead of President Trump’s inauguration, Sun, who is also the founder of the blockchain platform Tron, revealed that he had invested a total of $75 million in World Liberty Financial’s cryptocurrency. He publicly credited President Trump for his success in the crypto space, asserting, “If I have made any money in cryptocurrency, all credit goes to President Trump.”
Criticism and Ongoing Legal Troubles
As Sun became one of the largest holders of Trump’s memecoin, critics began to question his public endorsements of the former president, suggesting that his financial support for Trump’s crypto initiatives amounted to influence peddling. This scrutiny comes amidst an ongoing lawsuit from the Securities and Exchange Commission (SEC), which alleges that Sun violated securities laws. Sun has consistently denied any allegations of wrongdoing. In February, both Sun’s legal team and the SEC informed the presiding judge that they were in discussions for a potential resolution of the case.
Insight into the Crypto Landscape
For those interested in understanding the evolving dynamics of the cryptocurrency market, the new Fortune Crypto Playbook vodcast features seasoned crypto experts breaking down the significant factors currently influencing the industry. Tune in to gain deeper insights.
