5 hours ago
World Liberty Financial (WLFI) is defending its determination to frost hundreds of wallets, including Tron recovered Justin Sun's, saying the determination was meant to support users from phishing-related compromises, not to stifle mean trading.
"WLFI lone intervenes to support users, ne'er to soundlessness mean activity," the task wrote connected X.
WLFI said earlier this week that 272 wallets were blacklisted, with astir 215 of those linked to a phishing onslaught and 150 compromised done enactment channels.
Justin Sun's WLFI code was frozen connected Friday, pursuing respective tiny “dispersion test” transfers betwixt his ain wallets aft claiming unlocked tokens astatine launch, nary of which were sales.
The outbound transfers from Sun-tagged wallets made it look that the big-name WLFI capitalist was selling his tokens, but onchain information paints a antithetic picture.
In a station connected X, Nansen laminitis Alex Svanevik pointed retired that Sun's transfers didn't lucifer the timeline of WLFI's token decline.
Nansen information shows Justin Sun transferred 50 cardinal WLFI worthy astir $9.2 cardinal connected Sept. 4 astatine 09:18 UTC — 3 to 5 hours aft the token’s steepest driblet — meaning the transportation followed the clang alternatively than caused it.
Onchain information from Nansen shows a $12 cardinal WLFI transportation from HTX to Binance by a third-party marketplace maker.
The tokens were borrowed utilizing HTX’s ain superior arsenic portion of a regular rebalance, but the determination came aft WLFI’s sharpest declines and was excessively tiny to person moved the market, considering WLFI has a regular trading measurement of implicit $700 million.
Once deposited connected Binance, it is intolerable to find whether the tokens were sold oregon simply held.
Market participants alternatively constituent to wide shorting and dumping of WLFI done marketplace makers and trading desks crossed respective exchanges arsenic the existent operator of the crash.
Onchain records backmost this view: a transportation from BitGo to Flowdesk flagged by Nansen, coincided with the commencement of WLFI’s descent and has go a cardinal datapoint successful explaining the sell-off.
Meanwhile, WLFI’s determination to frost funds linked to the clang acceptable disconnected tense chatter among whales, marketplace makers, and different trading desks that their tokens could beryllium frozen by literal fiat.
“If they tin bash it to Sun, who’s next?” a idiosyncratic acquainted with conversations among ample marketplace participants told CoinDesk.
WLFI is presently trading for $0.18, according to CoinGecko. It's down 40% since listing.
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