If they could do it in the sun, who would next? ‘Say the insiderrs like WLFI’s claim that Freeze will’ protect users’

World Liberty Financial (Wlfi) is defending its decision to freeze hundreds of wallets, including the Tron that found Justin Sun’s, saying that the move was intended to protect users from phishing-related compromises, not to avoid normal trade.

“The WLFI is only interrupted to protect users, never silences normal activity,” the project wrote to X.

WLFI said earlier this week that 272 purses were that -Blacklist, with approximately 215 of those linked to a phishing attack and 150 compromised by support channels.

Justin Sun’s WLFI address frozen on Friday.

Outbound transfers from sun-tag wallets appear that WLFI’s big investor name sells its tokens, but onchain data paints a different picture.

In a post on xNansen founder Alex Svanevik pointed out that the sun shifts do not match the WLFI token rejection timeline.

Nansen’s data shows Justin Sun that moved 50 million WLFIs worth about $ 9.2 million on September 4 to 09:18 UTC – three to five hours after a steep token collapse – meaning the move followed the crash instead of its cause.

Onchain data from Nansen shows a $ 12 million WLFI transfer from HTX to Binance through a third-party market manufacturer.

The tokens were borrowed with its own HTX capital as part of a regular rebalance, but the move came after WLFI’s sharp decline and very little market moved, considering the WLFI has a sunny trading volume of over $ 700 million.

When deposited in Binance, it is impossible to determine if the tokens are sold or simply held.

Participants in the market instead point to WLFI’s broad rotation and disposal through market makers and trading desks with many exchanges as real crashing drivers.

Onchain recorded this view: a move from BitGo to Flowdesk flagged by Nansen, at the same time as the WLFI slide began and became a major datapoint in the seller’s explanation.

Meanwhile, the WLFI’s decision to file funds that are linked to the crash has set a nervous chatter on whales, market makers, and other trading desks that their tokens can refrozen literally Fiat.

“If they could do it in the Sun, who’s next?” is how someone who is familiar with conversations with large market participants is that it has been —paraphrased when speaking to CoinDesk.

WLFI is currently trading for $ 0.18, According to Coingecko. It has dropped 40% since listed.