“Who Could Be Next After Sun?” Insiders Ask as WLFI Frames Freeze as Move to ‘Protect Users’

WLFI’s token crash wasn’t Justin Sun’s fault, onchain data shows — but the project’s mass wallet freezes, including Sun’s, are spooking whales and fueling fears of arbitrary controls.

Last week, WLFI blacklisted 272 wallets, saying most were tied to phishing or support-channel breaches. “WLFI only intervenes to protect users, never to silence normal activity,” the team claimed on X.

Sun’s wallet was frozen after he shuffled tokens between his own addresses in what he called “dispersion tests.” None were sales. Nansen data confirms his biggest transfer — 50 million WLFI worth $9.2 million — happened hours after the token’s worst plunge.

Meanwhile, a $12 million WLFI move from HTX to Binance by a market maker, flagged by Nansen, was just a routine rebalance. With WLFI’s daily volume north of $700 million, it barely registered.

Traders now say the real driver was heavy shorting and coordinated dumping across desks. A transfer from BitGo to Flowdesk timed perfectly with the start of WLFI’s nosedive, becoming the main datapoint for analysts.

But it’s the freezes, not the crash, that have rattled big players most. “If they can do it to Sun, who’s next?” one trader told CoinDesk, echoing growing unease among market makers.

WLFI is down 40% since launch and currently trades at $0.18, per CoinGecko.