In recent developments within the decentralized finance (DeFi) landscape, the newly established platform Liberty Finance (LFN) is encountering substantial hurdles. This follows the eagerly anticipated debut of the LFN token, significantly influenced by the prominent figures in the financial industry, including members of the Trump family.

The platform has raised serious concerns regarding a potential manipulation scheme executed by a particular cryptocurrency exchange. Such claims have brought notable attention to figures like crypto entrepreneur Justin Sun, known for his influential position in the market.

Liberty Finance Accuses Exchange of Manipulation

Following its launch, the LFN token initially soared to a remarkable price of $0.60 on September 2. Unfortunately, this positive momentum was fleeting as the token experienced a drastic drop, hitting a weekly low of $0.22—illustrating a remarkable 63% decline in value.

Liberty Finance has formally claimed that the price drop correlates with actions taken by the exchange, alongside ambiguous transactions linked to Sun’s wallet, which have resulted in substantial parts of his assets becoming inaccessible.

Furthermore, the platform has opted to blacklist Sun’s wallet, encompassing approximately $600 million worth of available LFN tokens that are now stuck, along with 3 billion locked tokens that remain completely unattainable.

Justin Sun Denies All Allegations

Responding to the allegations, Justin Sun utilized the social media platform X to dismiss the claims against him. He expressed that his wallet had merely performed “small deposit tests” with insignificant amounts and had not participated in any buying or selling that could have affected the LFN price.

The partnership between Justin Sun and Liberty Finance traces back to December 2024, when he made a substantial investment of $35 million in LFN tokens, establishing him as the platform’s primary stakeholder.

His involvement was further heightened with endorsements for former President Donald Trump’s initiative to create a new regulatory framework for cryptocurrencies, a strategy believed to enhance interest in digital currencies among major financial institutions across the board.

Image credit: DALL-E, chart from TradingView.com