Investors in World Liberty Financial are threatening a class action lawsuit against the project over proposed vesting changes, which they label as fraudulent.
The World Liberty Financial (WLFI) team has proposed a contentious four-year vesting period for their tokens, prompting allegations of fraud from investors. This move aims to replace the indefinite lock-up of 62.3 billion WLFI tokens with a structured unlocking schedule.
Under the new proposal, team members, founders, and advisors would face a two-year freeze on their tokens, followed by a three-year release phase. Additionally, they are required to burn 4.5 billion WLFI tokens. Early participants would also see their assets locked for a total of four years.
“If holders do not approve the new schedule, their tokens will remain indefinitely locked under the old terms,” WLFI stated.
A quorum of 1 billion WLFI tokens is necessary for the proposal to pass, with a simple majority required within a seven-day voting window. If approved, holders will have ten days to accept the new terms.
Opposition from Major Investors
Justin Sun, the largest WLFI holder and founder of TRON, has vocally opposed the initiative, labeling it a governance scam. Sun criticized the proposal as coercive, arguing that it punishes dissenters by locking their tokens permanently should they vote against it. He also revealed that he and other significant investors have been barred from voting due to their governance tokens being frozen.
“This is not voting. This is coercion. What democratic process rewards agreement and punishes dissent?” Sun remarked.
The conflict between Sun and the WLFI team escalated after he transferred 50 million coins and was subsequently blacklisted. Tensions rose further when it was reported that WLFI was securing loans against its own governance tokens.
Potential Legal Action Looms
Some investors are considering filing a class action lawsuit against WLFI, expressing concerns that the new vesting terms could devalue their holdings significantly. One investor warned that accepting the new terms could result in their investments being worthless by the end of Trump's presidential term.
“If you hold this coin, do not accept the terms. The two-year unlocking will end after Trump's term, and by then this thing will be worth zero,” an investor stated.
Criticism of WLFI's actions has intensified, with many calling them a scam and urging for legal recourse. This is not the first time WLFI has faced legal challenges; in May 2025, a lawsuit was filed against a key executive over allegations of fraud.
