World Liberty Financial (WLFI) has taken action by blacklisting 272 wallet addresses over the past seven days. This decision, driven by security and compliance concerns, impacted prominent figures in the project including Justin Sun, founder of Tron and major WLFI investor. The move resulted in a nearly 45% price drop for WLFI tokens. Details surrounding these blacklists are still emerging but they reveal key aspects of the project’s operations, including: the use of pre-launch KYC processes to verify users during initial token distribution, investigations into suspected illicit activities. This action was facilitated by a designated wallet within the WLFI ecosystem. 272 wallets were affected, with a significant portion associated with Justin Sun who has invested heavily in the project, ranging from initial investments of $30 million in 2024 to a total of approximately $75 million by mid-2025. Despite this action, there has been no official announcement of new funding or grants from WLFI itself. The price drop following the news resulted in an all-time low for WLFI’s token. The project is currently working to address concerns regarding governance and potential lack of transparency, with a focus on user safety. 272 wallets were blacklisted, including those associated with Sun’s investments, impacting various aspects of the protocol. This event has sparked discussions about the balance between decentralization, security measures and intervention within decentralized protocols. WLFI maintains it is taking action to prevent losses for its users, not to suppress legitimate activities. The project emphasizes that trading will continue uninterrupted.