Cryptocurrency entrepreneur Justin Sun asserts his innocence in the face of accusations of market manipulation of WLFI.

• The WLFI team freezes the holdings of cryptocurrency entrepreneur Justin Sun, alleging market manipulation.
• Justin Sun defends himself with test transfers and addresses the claims of dispersion.
• A chronological analysis conducted by Nansen's AI agent suggests that the transfer occurred after the price drop.

The team from World Liberty Financial (WLFI) of former U.S. President Donald Trump has blacklisted the wallet address of cryptocurrency entrepreneur Justin Sun, as the token faces a massive supply sell-off, resulting in a 14% drop on Friday. Sun demands that the team unlock the tokens, while Nansen's AI agent points out that the transfer of 50 million WLFI occurred after the wave of selling.

Justin Sun is blacklisted for a sale of 50 million WLFI

The WLFI token is down 1% at the time of writing this article on Friday, following a 14% drop the day before. This sudden decline has raised alarms about possible price manipulation.

The WLFI team focused on a transfer of 50 million WLFI from Justin Sun's address, valued at $9.03 million at that time. Currently, data from Arkham Intelligence shows that the wallet holds 545.1 million WLFI tokens valued at $100.6 million.

Following the trail, the team has blacklisted Sun's wallet address and blocked his WLFI funds.

Sun has responded in a post on X urging the World Liberty Financial team to unlock the tokens that back his contribution as an early investor. While reaffirming his confidence and support for the project, the founder of Tron (TRX) also emphasized that “As one of the early investors, I joined along with everyone: we bought in the same way and we all deserve the same rights.”

In another post, the founder explained the operations that triggered the panic, specifically mentioning some general test deposits that were followed by the transfer of 50 million tokens. Sun describes the final transfer as a dispersion of addresses and not a sale, which could have impacted the market price.

Nansen's AI agent backs Tron founder

Alex Svanevik, the CEO of Nansen, a blockchain analytics platform, shared screenshots of Nansen's AI agents exonerating Justin Sun from any direct role in the WLFI crash on Thursday.

AI highlights the massive deposits on exchanges as the key catalyst that occurred between 2:19 GMT and 2:51 GMT, while the transfer of 50 million WLFI occurred at 9:18 GMT.

Justin Sun has reposted the same thing with the title “I am innocent” to extend his plea. It is worth noting that he was the winner of the invitation to Trump's Gala Dinner at the end of May, based on the holding of official TRUMP tokens worth more than $22 million.