Justin Sun Sues Trump-Linked World Liberty Financial Over Frozen WLFI Tokens

Sun claims the WLFI team froze his tokens, threatened burning, and denied repeated requests to restore access and participation rights immediately.

Tron founder Justin Sun has filed a lawsuit in a California federal court against the Donald Trump-linked crypto project, World Liberty Financial, to protect his legal rights as a holder of WLFI tokens.

He acknowledged being a supporter of President Donald Trump and his administration’s push to make the United States more crypto-friendly, and that the lawsuit does not change his stance toward them.

Justin Sun vs World Liberty

Sun alleged that certain members of the World Liberty Financial team have frozen all of his tokens, removed his voting rights on governance proposals, and threatened to permanently destroy his tokens by burning them without proper justification. He said he tried to resolve the issue privately with the project team, but his requests to unfreeze tokens and restore rights were rejected, leaving him no option but legal action.

The Tron founder stated that he wants to be treated like other early investors who received WLFI tokens, without special treatment or disadvantage.

“Unfortunately, certain individuals on the World Liberty project team have been operating the project in a manner that goes against President Trump’s values. I do not believe President Trump would condone these actions if he knew about them.”

He went on to add that the proposal, introduced on April 15th, is “bad for the community,” but since World Liberty froze his early investor tokens, he is not able to vote against it.

Recap: Token Lock Controversy

For those unfamiliar, the project released a proposal to convert 62.28 billion WLFI tokens from indefinite lock to a fixed vesting schedule. Holders who do not agree to the new terms will have their tokens locked indefinitely, but they can still use them for governance, subject to any future unlock decisions.

In response, Sun called it “one of the most absurd governance scams” he has ever seen. He claimed the proposal penalizes dissent and turns participation into coercion rather than open governance, while describing World Liberty as a “dictatorship wearing the mask of a DAO.”

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World Liberty pushed back, accusing Sun of “playing the victim” while making baseless allegations to cover up his own misconduct. It said this was a repeated pattern across different disputes. The platform also claimed it has contracts, evidence, and the truth on its side, adding that the matter will be settled in court.