Justin Sun has filed a lawsuit against World Liberty Financial over the blocking of his WLFI tokens and governance participation.
Justin Sun, known for founding the TRON blockchain, has initiated legal proceedings against World Liberty Financial (WLF), a cryptocurrency initiative connected to Donald Trump's family. The lawsuit arises from the alleged freezing of his WLFI tokens and threats to destroy them.
Sun submitted his complaint in a California federal court, contending that WLF has unjustly stripped him of his rights as a token holder, including his participation in governance matters. He stated, "I attempted to resolve this issue through dialogue, but the team denied me access to my tokens, leaving me with no alternative but to litigate."
In his criticisms, Sun pointed out the apparent lack of transparency within WLF, where 76% of the voting rights are reportedly held by just ten wallets. He expressed frustration over a governance proposal made on April 15, which entails a two-year lockup period for early investors and a substantial burning of advisory tokens, threatening indefinite freezing of assets for those rejecting these terms.
The WLF team has dismissed Sun's claims as ungrounded, asserting on social media that his tactics involve playing the victim to distract from his own questionable actions. Their representatives asserted, "We have the contracts. We have the evidence. We will see you in court."
Despite the legal dispute, Sun maintains his support for Trump's policies, claiming that the actions of certain WLF individuals are at odds with the values upheld by the President. Notably, Sun holds a significant amount of the meme coin TRUMP, which has revealed a concerning level of centralization, with over 91% of its supply concentrated in just ten addresses.
Sun had previously invested $30 million in WLFI, acquiring two billion tokens, making him the largest stakeholder in the project. This is not the first legal trouble for WLF; in May 2025, a lawsuit was filed against Chase Herro, the company's head of data and strategy, over allegations of fraud.
